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Schedule V - Valuation Allowances and Qualifying Accounts

12 Months Ended

Dec. 31, 2019

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule V — Valuation Allowances and Qualifying Accounts



($ in millions)			Additions
Description	Balance as of beginning of period		Charged to costs and expenses			Other additions		Deductions		Balance as of end of period
Year ended December 31, 2019
Allowance for reinsurance recoverables	$	65	$	(2	)	$	—	$	—	$	63
Allowance for premium installment receivable	77		137			—		124		90
Allowance for deferred tax assets	—		—			—		—		—
Allowance for estimated losses on mortgage loans	3		—			—		—		3
Allowance for estimated losses on agent loans	2		1			—		—		3
Year ended December 31, 2018
Allowance for reinsurance recoverables	$	70	$	(5	)	$	—	$	—	$	65
Allowance for premium installment receivable	77		118			—		118		77
Allowance for deferred tax assets	—		—			—		—		—
Allowance for estimated losses on mortgage loans	3		—			—		—		3
Allowance for estimated losses on agent loans	2		—			—		—		2
Year ended December 31, 2017
Allowance for reinsurance recoverables	$	84	$	(10	)	$	—	$	4	$	70
Allowance for premium installment receivable	84		109			—		116		77
Allowance for deferred tax assets	—		—			—		—		—
Allowance for estimated losses on mortgage loans	3		1			—		1		3
Allowance for estimated losses on agent loans	2		—			—		—		2

Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues
Premiums earned	$ 38,577	$ 36,513	$ 34,678
Net investment income	3,159	3,240	3,401
Realized capital gains and losses:
Total other-than-temporary impairment (“OTTI”) losses	(48)	(13)	(146)
OTTI losses reclassified to (from) other comprehensive income (OCI)	1	(1)	(4)
Net OTTI losses recognized in earnings	(47)	(14)	(150)
Sales and valuation changes on equity investments and derivatives	1,932	(863)	595
Total realized capital gains and losses	1,885	(877)	445
Total revenues	44,675	39,815	39,407
Costs and expenses
Property and casualty insurance claims and claims expense (net of reinsurance ceded and indemnification programs of $524, $1,378 and $1,807)	23,976	22,778	21,847
Life contract benefits (net of reinsurance ceded of $165, $240 and $179)	2,039	1,973	1,923
Interest credited to contractholder funds (net of reinsurance ceded of $20, $24 and $25)	640	654	690
Amortization of deferred policy acquisition costs	5,533	5,222	4,784
Operating costs and expenses	5,690	5,594	5,196
Pension and other postretirement remeasurement gains and losses	114	468	(217)
Restructuring and related charges	41	67	96
Amortization of purchased intangibles	126	105	99
Impairment of goodwill and purchased intangibles	106	0	125
Interest expense	327	332	335
Total costs and expenses	38,592	37,193	34,878
Gain on disposition of operations	6	6	20
Income from operations before income tax expense	6,089	2,628	4,549
Income tax expense	1,242	468	995
Net income	4,847	2,160	3,554
Preferred stock dividends	169	148	116
Net income applicable to common shareholders	$ 4,678	$ 2,012	$ 3,438
Earnings per common share:
Net income applicable to common shareholders earnings per common share - Basic (in dollars per share)	$ 14.25	$ 5.78	$ 9.50
Weighted average common shares - Basic (in shares)	328.2	347.8	362.0
Net income applicable to common shareholders earnings per common share - Diluted (in dollars per share)	$ 14.03	$ 5.70	$ 9.35
Weighted average common shares - Diluted (in shares)	333.5	353.2	367.8
Property and casualty insurance
Revenues
Premiums earned	$ 36,076	$ 34,048	$ 32,300
Life insurance
Revenues
Premiums earned	1,512	1,482	1,447
Insurance commissions and fees	2,501	2,465	2,378
Other revenue
Revenues
Insurance commissions and fees	$ 1,054	$ 939	$ 883

Consolidated Statements of Financial Position - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Investments
Fixed income securities, at fair value (amortized cost $56,293 and $57,134)	$ 59,044	$ 57,170
Equity securities, at fair value (cost $6,568 and $4,489)	8,162	5,036
Mortgage loans	4,817	4,670
Limited partnership interests	8,078	7,505
Short-term, at fair value (amortized cost $4,256 and $3,027)	4,256	3,027
Other	4,005	3,852
Total investments	88,362	81,260
Cash	338	499
Premium installment receivables, net	6,472	6,154
Deferred policy acquisition costs	4,699	4,784
Reinsurance and indemnification recoverables, net	9,211	9,565
Accrued investment income	600	600
Property and equipment, net	1,145	1,045
Goodwill	2,545	2,530
Other assets	3,534	3,007
Separate Accounts	3,044	2,805
Total assets	119,950	112,249
Liabilities
Reserve for property and casualty insurance claims and claims expense	27,712	27,423
Reserve for life-contingent contract benefits	12,300	12,208
Contractholder funds	17,692	18,371
Unearned premiums	15,343	14,510
Claim payments outstanding	929	1,007
Deferred income taxes	1,154	425
Other liabilities and accrued expenses	9,147	7,737
Long-term debt	6,631	6,451
Separate Accounts	3,044	2,805
Total liabilities	93,952	90,937
Commitments and Contingent Liabilities (Note 7, 8 and 14)
Shareholders’ equity
Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized, 92.5 thousand and 79.8 thousand shares issued and outstanding, $2,313 and $1,995 aggregate liquidation preference	2,248	1,930
Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 319 million and 332 million shares outstanding	9	9
Additional capital paid-in	3,463	3,310
Retained income	48,074	44,033
Deferred Employee Stock Ownership Plan (“ESOP”) expense	0	(3)
Treasury stock, at cost (581 million and 568 million shares)	(29,746)	(28,085)
Unrealized net capital gains and losses:
Unrealized net capital gains and losses on fixed income securities with OTTI	70	75
Other unrealized net capital gains and losses	2,094	(51)
Unrealized adjustment to DAC, DSI and insurance reserves	(277)	(26)
Total unrealized net capital gains and losses	1,887	(2)
Unrealized foreign currency translation adjustments	(59)	(49)
Unamortized pension and other postretirement prior service credit	122	169
Total accumulated other comprehensive income (AOCI)	1,950	118
Total shareholders’ equity	25,998	21,312
Total liabilities and shareholders’ equity	$ 119,950	$ 112,249

Equity Incentive Plans (Tables)

12 Months Ended

Dec. 31, 2019

Equity Incentive Plans [Abstract]

Assumptions used to determine the fair value of options granted



Option grant assumptions
	2019		2018		2017
Weighted average expected term	5.8 years		5.7 years		6.1 years
Expected volatility	15.6 - 28.9%		15.6 - 30.7%		15.7 - 32.7%
Weighted average volatility	18.4	%	19.8	%	21.0	%
Expected dividends	1.9 - 2.2%		1.5 - 2.2%		1.4 - 1.9%
Weighted average expected dividends	2.2	%	2.0	%	1.9	%
Risk-free rate	1.3 - 2.7%		1.3 - 3.2%		0.5 - 2.5%

Summary of option activity



Summary of option activity
	For the year ended December 31, 2019
	Number (in 000s)		Weighted average exercise price		Aggregate intrinsic value (in 000s)		Weighted average remaining contractual term (years)
Outstanding as of January 1, 2019	11,730		$	65.82
Granted	2,802		92.66
Exercised	(2,622	)	58.70
Forfeited	(235	)	89.20
Expired	(4	)	31.78
Outstanding as of December 31, 2019	11,671		73.40		$	455,691	6.3
Outstanding, net of expected forfeitures	11,547		73.20		453,268		6.3
Outstanding, exercisable (“vested”)	6,744		60.81		348,285		4.8

Changes in restricted stock units



Changes in restricted stock units
	For the year ended December 31, 2019
	Number (in 000s)		Weighted average grant date fair value
Nonvested as of January 1, 2019	957		$	74.58
Granted	271		92.97
Vested	(308	)	62.89
Forfeited	(43	)	84.75
Nonvested as of December 31, 2019	877		83.87

Changes in performance stock units



Changes in performance stock awards
	For the year ended December 31, 2019
	Number (in 000s)		Weighted average grant date fair value
Nonvested as of January 1, 2019	1,248		$	77.35
Granted	415		92.49
Adjustment for performance achievement	267		62.32
Vested	(702	)	62.32
Forfeited	(47	)	87.83
Nonvested as of December 31, 2019	1,181		87.78

Statutory Financial Information and Dividend Limitations - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Dividend Limitations
Action level RBC expressed as a multiplier of authorized control level RBC, which if not achieved would require specific actions to be taken	2
Capital and surplus	$ 20,400	$ 18,147
Restricted net assets	28,930
Allstate Insurance Company
Dividend Limitations
Dividends paid	2,730
Maximum amount of dividends without prior approval	$ 3,730
Advance notice period required for payment of dividend in excess of amount available for distribution without prior approval	30 days
Unassigned surplus excluding unrealized appreciation from investments	$ 12,090
Capital and surplus	19,570
Authorized control level RBC	$ 3,040

Income Taxes - Components of the net operating loss carryforwards (Details) $ in Millions	Dec. 31, 2019 USD ($)
Operating Loss Carryforwards [Line Items]
Components of the net operating loss carryforwards as of December 31, 2019	$ 122
20-Year Carryforward Expires in 2025-2037
Operating Loss Carryforwards [Line Items]
Components of the net operating loss carryforwards as of December 31, 2019	72
Indefinite Carryforward Period
Operating Loss Carryforwards [Line Items]
Components of the net operating loss carryforwards as of December 31, 2019	50
US Federal
Operating Loss Carryforwards [Line Items]
Components of the net operating loss carryforwards as of December 31, 2019	93
US Federal \| 20-Year Carryforward Expires in 2025-2037
Operating Loss Carryforwards [Line Items]
Components of the net operating loss carryforwards as of December 31, 2019	72
US Federal \| Indefinite Carryforward Period
Operating Loss Carryforwards [Line Items]
Components of the net operating loss carryforwards as of December 31, 2019	21
Foreign
Operating Loss Carryforwards [Line Items]
Components of the net operating loss carryforwards as of December 31, 2019	29
Foreign \| 20-Year Carryforward Expires in 2025-2037
Operating Loss Carryforwards [Line Items]
Components of the net operating loss carryforwards as of December 31, 2019	0
Foreign \| Indefinite Carryforward Period
Operating Loss Carryforwards [Line Items]
Components of the net operating loss carryforwards as of December 31, 2019	$ 29

Reporting Segments - Performance data and tax items (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting Information
Amortization of DAC	$ 5,533	$ 5,222	$ 4,784
Income tax expense	1,242	468	995
Allstate Protection
Segment Reporting Information
Amortization of DAC	4,649	4,475	4,205
Service Businesses
Segment Reporting Information
Amortization of DAC	543	463	296
Income tax expense	(18)	(19)	(194)
Allstate Life
Segment Reporting Information
Amortization of DAC	173	132	134
Income tax expense	53	75	(226)
Allstate Benefits
Segment Reporting Information
Amortization of DAC	161	145	142
Income tax expense	35	32	1
Allstate Annuities
Segment Reporting Information
Amortization of DAC	7	7	7
Income tax expense	73	(66)	(58)
Property-Liability
Segment Reporting Information
Income tax expense	1,196	613	1,285
Corporate and Other
Segment Reporting Information
Income tax expense	$ (97)	$ (167)	$ 187

Consolidated Statements of Shareholders’ Equity Parenthetical - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Stockholders' Equity [Abstract]
Cash dividends declared per common share (in dollars per share)	$ 2.00	$ 1.84	$ 1.48

Income Taxes - Narrative (Details) - USD ($)	12 Months Ended
Income Taxes - Narrative (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating Loss Carryforwards [Line Items]
Decrease in unrecognized tax benefits is reasonably possible	$ 58,000,000
Components of the net operating loss carryforwards as of December 31, 2019	122,000,000
Income tax penalties and interest expense		$ 0	$ 0
Interest on income taxes accrued		0
Unrecognized tax benefits, income tax penalties accrued		0
Income tax paid	648,000,000	731,000,000	$ 968,000,000
Current income tax payable	124,000,000	$ 124,000,000
US Federal
Operating Loss Carryforwards [Line Items]
Components of the net operating loss carryforwards as of December 31, 2019	93,000,000
Foreign
Operating Loss Carryforwards [Line Items]
Components of the net operating loss carryforwards as of December 31, 2019	$ 29,000,000

Commitments, Guarantees and Contingent Liabilities - Texas Associations (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Loss Contingencies
Portion of assessment	$ 12
Liability for claims	27,712	$ 27,423
Guaranty Funds
Loss Contingencies
Liability for insurance assessments	13	$ 12
Texas Fair Plan Association
Loss Contingencies
Liability for claims	$ 8

Summary of Significant Accounting Policies - Consolidated Statements of Shareholders' Equity (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2019	Jan. 01, 2018	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Balance, beginning of year	$ 21,312	$ 22,551
Net income	4,847	2,160	$ 3,554
Unrealized net capital gains and losses	1,889	(754)	319
Unrealized foreign currency translation adjustments	(10)	(48)	45
Change in unamortized pension and other postretirement prior service credit	(47)	(59)	(52)
Balance, end of year	25,998	21,312	22,551
Retained income
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Balance, beginning of year	44,033	41,579	39,009
Cumulative effect of change in accounting principle				$ 21	$ 1,088	$ 0
Net income	4,847	2,160	3,554
Dividends, Common Stock, Cash	(658)	(646)	(540)
Dividends on preferred stock	(169)	(148)	(116)
Reclassification of tax effects due to change in accounting principle	0	0	(328)
Balance, end of year	48,074	44,033	41,579
Accumulated other comprehensive income (loss)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Balance, beginning of year	118	1,889	1,249
Cumulative effect of change in accounting principle			(910)	0	(910)	$ 0
Unrealized net capital gains and losses	1,889	(754)	319
Unrealized foreign currency translation adjustments	(10)	(48)	45
Change in unamortized pension and other postretirement prior service credit	(47)	(59)	(52)
Reclassification of tax effects due to change in accounting principle	0	0	328
Balance, end of year	1,950	118	1,889
Previously reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Balance, beginning of year	21,312
Net income	4,811	2,252	3,189
Unrealized net capital gains and losses	1,889	(754)	319
Unrealized foreign currency translation adjustments	(4)	(55)	47
Change in unamortized pension and other postretirement prior service credit	141	(144)	307
Balance, end of year	26,156	21,312
Previously reported \| Retained income
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Balance, beginning of year	45,708	43,162	40,678
Cumulative effect of change in accounting principle				21	1,088
Net income	4,811	2,252	3,189
Dividends, Common Stock, Cash	(658)	(646)	(540)
Dividends on preferred stock	(169)	(148)	(116)
Reclassification of tax effects due to change in accounting principle			(49)
Balance, end of year	49,713	45,708	43,162
Previously reported \| Accumulated other comprehensive income (loss)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Balance, beginning of year	(1,557)	306	(416)
Cumulative effect of change in accounting principle				0	(910)
Unrealized net capital gains and losses	1,889	(754)	319
Unrealized foreign currency translation adjustments	(4)	(55)	47
Change in unamortized pension and other postretirement prior service credit	141	(144)	307
Reclassification of tax effects due to change in accounting principle			49
Balance, end of year	469	(1,557)	306
Impact of change \| Impact of change
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Balance, beginning of year	0
Net income	36	(92)	365
Unrealized net capital gains and losses	0	0	0
Unrealized foreign currency translation adjustments	(6)	7	(2)
Change in unamortized pension and other postretirement prior service credit	(188)	85	(359)
Balance, end of year	(158)	0
Impact of change \| Impact of change \| Retained income
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Balance, beginning of year	(1,675)	(1,583)	(1,669)
Cumulative effect of change in accounting principle				0	0
Net income	36	(92)	365
Dividends, Common Stock, Cash	0	0	0
Dividends on preferred stock	0	0	0
Reclassification of tax effects due to change in accounting principle			(279)
Balance, end of year	(1,639)	(1,675)	(1,583)
Impact of change \| Impact of change \| Accumulated other comprehensive income (loss)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Balance, beginning of year	1,675	1,583	1,665
Cumulative effect of change in accounting principle				$ 0	$ 0
Unrealized net capital gains and losses	0	0	0
Unrealized foreign currency translation adjustments	(6)	7	(2)
Change in unamortized pension and other postretirement prior service credit	(188)	85	(359)
Reclassification of tax effects due to change in accounting principle			279
Balance, end of year	$ 1,481	$ 1,675	$ 1,583

Investments - Net investment income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Net investment income
Short-term investments	$ 4,256	$ 3,027
Investment income, before expense	3,436	3,514	$ 3,613
Investment expense	(277)	(274)	(212)
Net investment income	3,159	3,240	3,401
Fixed income securities
Net investment income
Investment income, before expense	2,175	2,077	2,078
Equity securities
Net investment income
Investment income, before expense	206	170	174
Mortgage loans
Net investment income
Investment income, before expense	220	217	206
Limited partnership interests
Net investment income
Investment income, before expense	471	705	889
Short-term investments
Net investment income
Investment income, before expense	102	73	30
Other
Net investment income
Investment income, before expense	$ 262	$ 272	$ 236

Schedule I - Summary of Investments Other than Investments in Related Parties (Details) $ in Millions	Dec. 31, 2019 USD ($)
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	$ 84,017
Amount shown in the Balance Sheet	88,362
United States government, government agencies and authorities
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	4,971
Fair value (if applicable)	5,086
Amount shown in the Balance Sheet	5,086
States, municipalities and political subdivisions
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	8,080
Fair value (if applicable)	8,620
Amount shown in the Balance Sheet	8,620
Foreign governments
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	968
Fair value (if applicable)	979
Amount shown in the Balance Sheet	979
Public utilities
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	5,197
Fair value (if applicable)	5,576
Amount shown in the Balance Sheet	5,576
All other corporate bonds
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	35,893
Fair value (if applicable)	37,502
Amount shown in the Balance Sheet	37,502
Asset-backed securities
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	860
Fair value (if applicable)	862
Amount shown in the Balance Sheet	862
Mortgage-backed securities
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	324
Fair value (if applicable)	419
Amount shown in the Balance Sheet	419
Total fixed maturities
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	56,293
Fair value (if applicable)	59,044
Amount shown in the Balance Sheet	59,044
Public utilities
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	98
Fair value (if applicable)	136
Amount shown in the Balance Sheet	136
Banks, trusts and insurance companies
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	565
Fair value (if applicable)	771
Amount shown in the Balance Sheet	771
Industrial, miscellaneous and all other
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	5,662
Fair value (if applicable)	6,957
Amount shown in the Balance Sheet	6,957
Nonredeemable preferred stocks
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	243
Fair value (if applicable)	298
Amount shown in the Balance Sheet	298
Total equity securities
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	6,568
Fair value (if applicable)	8,162
Amount shown in the Balance Sheet	8,162
Mortgage loans on real estate
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	4,817
Fair value (if applicable)	5,012
Amount shown in the Balance Sheet	4,817
Real estate
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	1,005
Amount shown in the Balance Sheet	1,005
Policy loans
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	894
Amount shown in the Balance Sheet	894
Derivative instruments
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	140
Fair value (if applicable)	140
Amount shown in the Balance Sheet	140
Limited partnership interests
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	8,078
Amount shown in the Balance Sheet	8,078
Other long-term investments
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	1,966
Amount shown in the Balance Sheet	1,966
Short-term investments
Summary of Investments Other Than Investments in Related Parties
Cost/amortized cost	4,256
Fair value (if applicable)	4,256
Amount shown in the Balance Sheet	$ 4,256

Reinsurance and Indemnification - Other reinsurance programs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Lloyds of London
Reinsurance Retention Policy [Line Items]
Reinsurance and indemnification recoverables, net	$ 158	$ 165
Aleka Insurance Inc
Reinsurance Retention Policy [Line Items]
Largest reinsurance recoverable from a single reinsurer	115	37
Property-Liability
Reinsurance Retention Policy [Line Items]
Reinsurance and indemnification recoverables, net	$ 7,020	$ 7,270

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Summary of Operating Loss Carryforwards [Table Text Block]



Components of the net operating loss carryforwards as of December 31, 2019
($ in millions)	20-Year Carryforward Expires in 2025-2037		Indefinite Carryforward Period		Total
US Federal	$	72	$	21	$	93
Foreign	—		29		29
Total	$	72	$	50	$	122

Reconciliation of the change in the amount of unrecognized tax benefits



Reconciliation of the change in the amount of unrecognized tax benefits
	For the years ended December 31,
($ in millions)	2019		2018		2017
Balance – beginning of year	$	70	$	55	$	10
Increase for tax positions taken in a prior year	—		3		34
Increase for tax positions taken in the current year	—		12		11
Balance – end of year	$	70	$	70	$	55

Components of the deferred income tax assets and liabilities



Components of the deferred income tax assets and liabilities
	As of December 31,
($ in millions)	2019			2018
Deferred tax assets
Unearned premium reserves	$	642		$	594
Pension	197			192
Accrued compensation	147			145
Discount on loss reserves	78			67
Other postretirement benefits	49			45
Net operating loss carryover	26			50
Other assets	54			57
Total deferred tax assets	1,193			1,150
Deferred tax liabilities
DAC	(847		)	(854		)
Unrealized net capital gains	(507		)	(2		)
Investments	(567		)	(278		)
Life and annuity reserves	(222		)	(194		)
Intangible assets	(98		)	(145		)
Other liabilities	(106		)	(102		)
Total deferred tax liabilities	(2,347		)	(1,575		)
Net deferred tax liability	$	(1,154	)	$	(425	)

Components of income tax expense



Components of income tax expense
	For the years ended December 31,
($ in millions)	2019		2018			2017
Current	$	991	$	704		$	1,018
Deferred	251		(236		)	(23		)
Total income tax expense	$	1,242	$	468		$	995

Reconciliation of the statutory federal income tax rate to the effective income tax rate on income from operations



Reconciliation of the statutory federal income tax rate to the effective income tax rate
	For the years ended December 31,
($ in millions)	2019					2018					2017
Income before income taxes	$	6,089				$	2,628				$	4,549

Statutory federal income tax rate on income from operations	1,279			21.0	%	552			21.0	%	1,592			35.0	%
Tax credits	(33		)	(0.5	)	(34		)	(1.3	)	(59		)	(1.3	)
Share-based payments	(24		)	(0.4	)	(16		)	(0.6	)	(63		)	(1.4	)
Tax-exempt income	(27		)	(0.4	)	(24		)	(0.9	)	(32		)	(0.7	)
State income taxes	41			0.7		27			1.0		21			0.5
Tax Legislation benefit	—			—		(29		)	(1.1	)	(509		)	(11.2	)
Non-deductible goodwill impairment	—			—		—			—		44			1.0
Other	6			—		(8		)	(0.3	)	1			—
Effective income tax rate on income from operations	$	1,242		20.4	%	$	468		17.8	%	$	995		21.9	%

Fair Value of Assets and Liabilities

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities



Note 6	Fair Value of Assets and Liabilities

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

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

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


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


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


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

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

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

The Company is responsible for the determination of fair value and the supporting assumptions and methodologies. The Company gains assurance that assets and liabilities are appropriately valued through

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

The Company has two types of situations where investments are classified as Level 3 in the fair value hierarchy:


(1)	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.

(2)

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, bank loans, agent loans and policy loans. Accordingly, such investments are only included

in the fair value hierarchy disclosure when the investment is subject to remeasurement at fair value after initial recognition and the resulting remeasurement is reflected in the consolidated financial statements.

In 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 inputs and valuation techniques for Level 2 and Level 3 assets and liabilities measured at fair value on a recurring basis

Level 2 measurements


•	Fixed income securities:

U.S. government and agencies, municipal, corporate - public and 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.

Corporate - privately placed: Privately placed are 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.

Corporate - privately placed also includes redeemable preferred stock that are valued using quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, underlying stock prices and credit spreads.

ABS and MBS: 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. Certain ABS are valued based on non-binding broker quotes whose inputs have been corroborated to be market observable. Residential MBS include prepayment speeds as a primary input for valuation.


•	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.


•	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, total return 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, index price levels, 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 privately placed, ABS and MBS: Primarily valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable. Other inputs for corporate fixed income securities 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.


•	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.


•	Short-term: For certain short-term investments, amortized cost is used as the best estimate of fair value.

•

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.

Investments excluded from the fair value hierarchy

Limited partnerships carried at fair value, which do not have readily determinable fair values, use NAV provided by the investees and are excluded from the fair value hierarchy. These investments are generally not redeemable by the investees and generally cannot be sold without approval of the general partner. The Company receives distributions of income and proceeds from the liquidation of the underlying assets of the investees, which usually takes place in years 4-9 of the typical contractual life of 10-12 years. As of December 31, 2019, the Company has commitments to invest $492 million in these limited partnership interests.



Assets and liabilities measured at fair value
	As of December 31, 2019
($ 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			Total
Assets
Fixed income securities:
U.S. government and agencies	$	4,689		$	397		$	—					$	5,086
Municipal	—			8,558			62						8,620
Corporate - public	—			30,819			61						30,880
Corporate - privately placed	—			12,084			114						12,198
Foreign government	—			979			—						979
ABS	—			797			65						862
MBS	—			379			40						419
Total fixed income securities	4,689			54,013			342						59,044
Equity securities	7,407			384			371						8,162
Short-term investments	1,940			2,291			25						4,256
Other investments: Free-standing derivatives	—			180			—			(40		)	140
Separate account assets	3,044			—			—						3,044
Other assets	1			—			—						1
Total recurring basis assets	17,081			56,868			738			(40		)	74,647
Total assets at fair value	$	17,081		$	56,868		$	738		$	(40	)	$	74,647
% of total assets at fair value	22.9		%	76.2		%	1.0		%	(0.1		)%	100.0		%

Investments reported at NAV													1,814
Total													$	76,461

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(462	)				$	(462	)
Other liabilities: Free-standing derivatives	—			(84		)	—			$	12		(72		)
Total recurring basis liabilities	$	—		$	(84	)	$	(462	)	$	12		$	(534	)
% of total liabilities at fair value	—		%	15.7		%	86.5		%	(2.2		)%	100.0		%



Assets and liabilities measured at fair value
	As of December 31, 2018
($ 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			Total
Assets
Fixed income securities:
U.S. government and agencies	$	5,085		$	432		$	—					$	5,517
Municipal	—			9,099			70						9,169
Corporate - public	—			29,200			70						29,270
Corporate - privately placed	—			10,798			90						10,888
Foreign government	—			747			—						747
ABS	—			976			69						1,045
MBS	—			508			26						534
Total fixed income securities	5,085			51,760			325						57,170
Equity securities	4,364			331			341						5,036
Short-term investments	1,338			1,659			30						3,027
Other investments: Free-standing derivatives	—			139			1			$	(23	)	117
Separate account assets	2,805			—			—						2,805
Other assets	2			—			—						2
Total recurring basis assets	$	13,594		$	53,889		$	697		$	(23	)	$	68,157
% of total assets at fair value	19.9		%	79.1		%	1.0		%	—		%	100.0		%
Investments reported at NAV													1,779
Total													$	69,936
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(224	)				$	(224	)
Other liabilities: Free-standing derivatives	(1		)	(62		)	—			$	6		(57		)
Total recurring basis liabilities	$	(1	)	$	(62	)	$	(224	)	$	6		$	(281	)
% of total liabilities at fair value	0.3		%	22.1		%	79.7		%	(2.1		)%	100.0		%



Quantitative information about the significant unobservable inputs used in Level 3 fair value measurements
($ in millions)	Fair value			Valuation technique	Unobservable input	Range	Weighted average
December 31, 2019
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(430	)	Stochastic cash flow model	Projected option cost	1.0 - 4.2%	2.67%

December 31, 2018
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(185	)	Stochastic cash flow model	Projected option cost	1.0 - 2.2%	1.74%

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

As of December 31, 2019 and 2018, Level 3 fair value measurements of fixed income securities total $342 million and $325 million, respectively, and include $50 million and $105 million, respectively, of securities valued based on non-binding broker quotes where the inputs have not been corroborated to be market

observable and $36 million and $44 million, respectively, of municipal fixed income securities that are not rated by third-party credit rating agencies. As the Company does not develop the Level 3 fair value unobservable inputs for these fixed income securities, they 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.



Rollforward of Level 3 assets and liabilities held at fair value during the year ended December 31, 2019
	Balance as of December 31, 2018			Total gains (losses) included in:						Transfers																	Balance as of December 31, 2019
($ in millions)	Balance as of December 31, 2018			Net income			OCI			Into Level 3			Out of Level 3			Purchases		Sales			Issues			Settlements			Balance as of December 31, 2019
Assets
Fixed income securities:
Municipal	$	70		$	1		$	4		$	—		$	(5	)	$	—	$	(5	)	$	—		$	(3	)	$	62
Corporate - public	70			—			3			30			(113		)	86		(11		)	—			(4		)	61
Corporate - privately placed	90			(1		)	2			43			(2		)	4		(13		)	—			(9		)	114
ABS	69			1			(1		)	76			(210		)	159		(22		)	—			(7		)	65
MBS	26			—			(2		)	9			—			9		—			—			(2		)	40
Total fixed income securities	325			1			6			158			(330		)	258		(51		)	—			(25		)	342
Equity securities	341			30			—			—			—			82		(82		)	—			—			371
Short-term investments	30			—			—			—			—			35		(40		)	—			—			25
Free-standing derivatives, net	1			(1		)	—			—			—			—		—			—			—			—
Total recurring Level 3 assets	697			30			6			158			(330		)	375		(173		)	—			(25		)	738
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	(224		)	(61		)	—			(175		)	—			—		—			(16		)	14			(462		)
Total recurring Level 3 liabilities	$	(224	)	$	(61	)	$	—		$	(175	)	$	—		$	—	$	—		$	(16	)	$	14		$	(462	)



Total Level 3 gains (losses) included in net income for the year ended December 31, 2019
($ in millions)	Net investment income			Realized capital gains and losses		Life contract benefits		Interest credited to contractholder funds			Total
Components of net income	$	(2	)	$	32	$	7	$	(68	)	$	(31	)



Rollforward of Level 3 assets and liabilities held at fair value during the year ended December 31, 2018
	Balance as of December 31, 2017			Total gains (losses) included in:						Transfers																Balance as of December 31, 2018
($ in millions)	Balance as of December 31, 2017			Net income			OCI			Into Level 3		Out of Level 3			Purchases		Sales			Issues			Settlements			Balance as of December 31, 2018
Assets
Fixed income securities:
Municipal	$	101		$	1		$	(2	)	$	—	$	(26	)	$	10	$	(8	)	$	—		$	(6	)	$	70
Corporate - public	108			—			(3		)	17		(21		)	10		(38		)	—			(3		)	70
Corporate - privately placed	224			(1		)	(3		)	20		(119		)	22		(5		)	—			(48		)	90
ABS	147			—			2			42		(159		)	160		(97		)	—			(26		)	69
MBS	26			—			—			—		—			1		—			—			(1		)	26
Total fixed income securities	606			—			(6		)	79		(325		)	203		(148		)	—			(84		)	325
Equity securities	210			37			—			—		—			109		(15		)	—			—			341
Short-term investments	20			—			—			—		—			55		(45		)	—			—			30
Free-standing derivatives, net	1			—			—			—		—			—		—			—			—			1
Total recurring Level 3 assets	$	837		$	37		$	(6	)	$	79	$	(325	)	$	367	$	(208	)	$	—		$	(84	)	$	697
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(286	)	$	58		$	—		$	—	$	—		$	—	$	—		$	(2	)	$	6		$	(224	)
Total recurring Level 3 liabilities	$	(286	)	$	58		$	—		$	—	$	—		$	—	$	—		$	(2	)	$	6		$	(224	)



Total Level 3 gains (losses) included in net income for the year ended December 31, 2018
($ in millions)	Net investment income		Realized capital gains and losses		Life contract benefits			Interest credited to contractholder funds		Total
Components of net income	$	—	$	37	$	(5	)	$	63	$	95



Rollforward of Level 3 assets and liabilities held at fair value during the year ended December 31, 2017
	Balance as of December 31, 2016			Total gains (losses) included in:						Transfers																Balance as of December 31, 2017
($ in millions)	Balance as of December 31, 2016			Net income			OCI			Into Level 3		Out of Level 3			Purchases		Sales			Issues			Settlements			Balance as of December 31, 2017
Assets
Fixed income securities:
Municipal	$	125		$	(1	)	$	7		$	—	$	(6	)	$	8	$	(29	)	$	—		$	(3	)	$	101
Corporate - public	78			—			—			4		(30		)	60		—			—			(4		)	108
Corporate - privately placed	263			8			(2		)	30		(49		)	44		(30		)	—			(40		)	224
ABS	69			—			6			60		(280		)	322		—			—			(30		)	147
MBS	23			—			—			—		—			6		—			—			(3		)	26
Total fixed income securities	558			7			11			94		(365		)	440		(59		)	—			(80		)	606
Equity securities	163			13			4			—		(4		)	48		(14		)	—			—			210
Short-term investments	15			—			—			—		—			45		(40		)	—			—			20
Free-standing derivatives, net	(2		)	3			—			—		—			—		—			—			—			1
Other assets	1			(1		)	—			—		—			—		—			—			—			—
Total recurring Level 3 assets	$	735		$	22		$	15		$	94	$	(369	)	$	533	$	(113	)	$	—		$	(80	)	$	837
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(290	)	$	—		$	—		$	—	$	—		$	—	$	—		$	(2	)	$	6		$	(286	)
Total recurring Level 3 liabilities	$	(290	)	$	—		$	—		$	—	$	—		$	—	$	—		$	(2	)	$	6		$	(286	)



Total Level 3 gains (losses) included in net income for the year ended December 31, 2017
($ in millions)	Net investment income		Realized capital gains and losses		Life contract benefits		Interest credited to contractholder funds			Total
Components of net income	$	19	$	4	$	9	$	(10	)	$	22

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, including situations where a fair value quote is not provided by the Company’s independent third-party valuation service provider resulting in the price becoming stale or replaced with a broker quote whose inputs have not been corroborated to be market observable. This situation will result in the transfer of a security 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 2019, 2018 or 2017.

Transfers into Level 3 during 2019, 2018 and 2017 included situations where a 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 into Level 3 during 2019 also included derivatives embedded in equity-indexed universal life contracts due to refinements in the valuation modeling resulting in an increase in significance of non-market observable inputs.

Transfers out of Level 3 during 2019, 2018 and 2017 included situations where a broker quote was used in the prior period and a 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.



Valuation changes included in net income for Level 3 assets and liabilities held as of
	December 31,
($ in millions)	2019			2018			2017
Assets
Fixed income securities:
Municipal	$	1		$	—		$	(3	)
Corporate	—			—			1
Total fixed income securities	1			—			(2		)
Equity securities	6			36			13
Free-standing derivatives, net	(1		)	—			—
Other assets	—			—			(1		)
Total recurring Level 3 assets	$	6		$	36		$	10
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(61	)	$	58		$	—
Total recurring Level 3 liabilities	(61		)	58			—
Total included in net income	$	(55	)	$	94		$	10

Components of net income
Net investment income	$	(2	)	$	—		$	19
Realized capital gains and losses	8			36			(8		)
Life contract benefits	7			(5		)	9
Interest credited to contractholder funds	(68		)	63			(10		)
Total included in net income	$	(55	)	$	94		$	10



Carrying values and fair value estimates of financial instruments not carried at fair value
($ in millions)		December 31, 2019				December 31, 2018
Financial assets	Fair value level	Carrying value		Fair value		Carrying value		Fair value
Mortgage loans	Level 3	$	4,817	$	5,012	$	4,670	$	4,703
Bank loans	Level 3	1,204		1,185		1,350		1,298
Agent loans	Level 3	666		664		620		617

Financial liabilities
Contractholder funds on investment contracts	Level 3	8,438		9,158		9,250		9,665
Long-term debt	Level 2	6,631		7,738		6,451		6,708
Liability for collateral	Level 2	$	1,829	$	1,829	$	1,458	$	1,458

- 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

Summary of Significant Accounting Policies - Consolidated Statement of Comprehensive Income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income	$ 4,847	$ 2,160	$ 3,554
Unrealized net capital gains and losses	1,889	(754)	319
Unrealized foreign currency translation adjustments	(10)	(48)	45
Change in unamortized pension and other postretirement prior service credit	(47)	(59)	(52)
Other comprehensive income (loss), after-tax	1,832	(861)	312
Comprehensive income	6,679	1,299	3,866
Previously reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income	4,811	2,252	3,189
Unrealized net capital gains and losses	1,889	(754)	319
Unrealized foreign currency translation adjustments	(4)	(55)	47
Change in unamortized pension and other postretirement prior service credit	141	(144)	307
Other comprehensive income (loss), after-tax	2,026	(953)	673
Comprehensive income	6,837	1,299	3,862
Impact of change \| Impact of change
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income	36	(92)	365
Unrealized net capital gains and losses	0	0	0
Unrealized foreign currency translation adjustments	(6)	7	(2)
Change in unamortized pension and other postretirement prior service credit	(188)	85	(359)
Other comprehensive income (loss), after-tax	(194)	92	(361)
Comprehensive income	$ (158)	$ 0	$ 4

Commitments, Guarantees and Contingent Liabilities - Guaranty funds and Guarantees (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Guaranty Funds
Loss Contingencies
Liability for insurance assessments	$ 13	$ 12
Insurance assessments, premium tax offsets	15	$ 16
Minimum
Loss Contingencies
Reasonably possible additional losses	0
Maximum
Loss Contingencies
Reasonably possible additional losses	$ 75

Investments - Rollforward of the cumulative credit losses recognized in earnings for fixed income securities held (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Credit Losses on Fixed Income Securities
Beginning balance	$ (204)	$ (226)	$ (318)
Additional credit loss for securities previously other-than-temporarily impaired	(10)	(7)	(18)
Additional credit loss for securities not previously other-than-temporarily impaired	(4)	(3)	(8)
Reduction in credit loss for securities disposed or collected	32	30	116
Change in credit loss due to accretion of increase in cash flows	0	2	2
Ending balance	$ (186)	$ (204)	$ (226)

Benefit Plans - Fair Value of pension plan assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Free Standing Derivative Liabilities \| Quoted prices in active markets for identical assets (Level 1)
Components of net periodic cost
Total plan assets at fair value		$ 0
Free Standing Derivative Liabilities \| Significant other observable inputs (Level 2)
Components of net periodic cost
Total plan assets at fair value		(11)
Free Standing Derivative Liabilities \| Significant unobservable inputs (Level 3)
Components of net periodic cost
Total plan assets at fair value		0
Pension benefits
Components of net periodic cost
Total plan assets at fair value	$ 3,020	$ 2,809
Total plan assets at fair value, allocation (as a percent)	100.00%	100.00%
Investments measured using the net asset value practical expedient	$ 3,418	$ 2,687
Securities lending obligation	(272)	(222)
Derivatives counterparty and cash collateral netting	9	(6)
Other net plan assets	17	31
Fair value of plan assets	6,192	5,299	$ 6,284
Pension benefits \| Quoted prices in active markets for identical assets (Level 1)
Components of net periodic cost
Total plan assets at fair value	$ 579	$ 345
Total plan assets at fair value, allocation (as a percent)	19.20%	12.30%
Pension benefits \| Significant other observable inputs (Level 2)
Components of net periodic cost
Total plan assets at fair value	$ 2,441	$ 2,459
Total plan assets at fair value, allocation (as a percent)	80.80%	87.50%
Pension benefits \| Significant unobservable inputs (Level 3)
Components of net periodic cost
Total plan assets at fair value	$ 0	$ 5
Total plan assets at fair value, allocation (as a percent)	0.00%	0.20%
Fair value of plan assets	$ 0	$ 5	39	$ 10
Pension benefits \| Equity securities
Components of net periodic cost
Total plan assets at fair value	261	316
Pension benefits \| Equity securities \| Quoted prices in active markets for identical assets (Level 1)
Components of net periodic cost
Total plan assets at fair value	216	51
Pension benefits \| Equity securities \| Significant other observable inputs (Level 2)
Components of net periodic cost
Total plan assets at fair value	45	265
Pension benefits \| Equity securities \| Significant unobservable inputs (Level 3)
Components of net periodic cost
Total plan assets at fair value	0	0
Fair value of plan assets	0	0	29	0
Pension benefits \| U.S. government and agencies
Components of net periodic cost
Total plan assets at fair value	1,333	681
Pension benefits \| U.S. government and agencies \| Quoted prices in active markets for identical assets (Level 1)
Components of net periodic cost
Total plan assets at fair value	237	172
Pension benefits \| U.S. government and agencies \| Significant other observable inputs (Level 2)
Components of net periodic cost
Total plan assets at fair value	1,096	509
Pension benefits \| U.S. government and agencies \| Significant unobservable inputs (Level 3)
Components of net periodic cost
Total plan assets at fair value	0	0
Pension benefits \| Corporate
Components of net periodic cost
Total plan assets at fair value	1,060	1,484
Pension benefits \| Corporate \| Quoted prices in active markets for identical assets (Level 1)
Components of net periodic cost
Total plan assets at fair value	0	0
Pension benefits \| Corporate \| Significant other observable inputs (Level 2)
Components of net periodic cost
Total plan assets at fair value	1,060	1,479
Pension benefits \| Corporate \| Significant unobservable inputs (Level 3)
Components of net periodic cost
Total plan assets at fair value	0	5
Fair value of plan assets	0	5	$ 10	$ 10
Pension benefits \| Short-term investments
Components of net periodic cost
Total plan assets at fair value	380	320
Pension benefits \| Short-term investments \| Quoted prices in active markets for identical assets (Level 1)
Components of net periodic cost
Total plan assets at fair value	128	122
Pension benefits \| Short-term investments \| Significant other observable inputs (Level 2)
Components of net periodic cost
Total plan assets at fair value	252	198
Pension benefits \| Short-term investments \| Significant unobservable inputs (Level 3)
Components of net periodic cost
Total plan assets at fair value	0	0
Pension benefits \| Free Standing Derivative Assets
Components of net periodic cost
Total plan assets at fair value	5	19
Pension benefits \| Free Standing Derivative Assets \| Quoted prices in active markets for identical assets (Level 1)
Components of net periodic cost
Total plan assets at fair value	0	0
Pension benefits \| Free Standing Derivative Assets \| Significant other observable inputs (Level 2)
Components of net periodic cost
Total plan assets at fair value	5	19
Pension benefits \| Free Standing Derivative Assets \| Significant unobservable inputs (Level 3)
Components of net periodic cost
Total plan assets at fair value	0	0
Pension benefits \| Free Standing Derivative Liabilities
Components of net periodic cost
Total plan assets at fair value	(19)	$ (11)
Pension benefits \| Free Standing Derivative Liabilities \| Quoted prices in active markets for identical assets (Level 1)
Components of net periodic cost
Total plan assets at fair value	(2)
Pension benefits \| Free Standing Derivative Liabilities \| Significant other observable inputs (Level 2)
Components of net periodic cost
Total plan assets at fair value	(17)
Pension benefits \| Free Standing Derivative Liabilities \| Significant unobservable inputs (Level 3)
Components of net periodic cost
Total plan assets at fair value	$ 0

Reinsurance and Indemnification - National Flood Insurance Program (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reinsurance Retention Policy [Line Items]
Ceded premium earned	$ 1,407,000,000	$ 1,306,000,000	$ 1,274,000,000
Florida Hurricane Catastrophe Fund
Reinsurance Retention Policy [Line Items]
Reinsurance and indemnification recoverables, net	52,000,000	104,000,000
Ceded premium earned	9,000,000	10,000,000	11,000,000
Ceded losses incurred	33,000,000	143,000,000	19,000,000
National Flood Insurance Program
Reinsurance Retention Policy [Line Items]
Reinsurance and indemnification recoverables, net	25,000,000	31,000,000
Ceded premium earned	258,000,000	258,000,000	263,000,000
Ceded losses incurred	$ 150,000,000	$ 118,000,000	$ 1,120,000,000

Equity Incentive Plans - Changes in performance stock awards (Details) - Performance stock awards - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stock units activity
Outstanding at the beginning of the period (in shares)	1,248
Granted (in shares)	415
Adjustment for performance achievement (in shares)	(267)
Vested (in shares)	(702)
Forfeited (in shares)	(47)
Outstanding at the end of the period (in shares)	1,181	1,248
Weighted average grant date fair value
Weighted average grant date fair value, nonvested at the beginning of the period (in dollars per share)	$ 77.35
Weighted average grant date fair value, granted (in dollars per share)	92.49	$ 92.88	$ 78.47
Weighted average grant date fair value, adjustment for performance achievement (in dollars per share)	62.32
Weighted average grant date fair value, vested (in dollars per share)	62.32
Weighted average grant date fair value, forfeited (in dollars per share)	87.83
Weighted average grant date fair value, nonvested at the end of the period (in dollars per share)	$ 87.78	$ 77.35
Total fair value of restricted stock and restricted stock units vested	$ 65	$ 15	$ 17

Investments - Unrealized loss and Limited partnerships (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Other details of unrealized loss
Limited partnership interests	$ 8,078	$ 7,505
EMA limited partnerships
Other details of unrealized loss
Limited partnership interests	6,260	5,730
Limited partnership interests
Other details of unrealized loss
Limited partnership interests	$ 1,810	$ 1,780

Benefit Plans - Estimated future benefit payments (Details) $ in Millions	Dec. 31, 2019 USD ($)
Pension benefits
Estimated future benefit payments
2019	$ 600
2020	629
2021	636
2022	634
2023	626
2025-2029	2,401
Total benefit payments	5,526
Postretirement benefits
Estimated future benefit payments
2019	23
2020	24
2021	26
2022	27
2023	27
2025-2029	136
Total benefit payments	$ 263

Investments - Valuation changes included in net income for investments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Debt and Equity Securities, FV-NI [Line Items]
Total	$ 1,222	$ (12)
Equity securities
Debt and Equity Securities, FV-NI [Line Items]
Total	1,073	(261)
Limited partnership interests
Debt and Equity Securities, FV-NI [Line Items]
Total	$ 149	$ 249

Reinsurance and Indemnification - Catastrophe reinsurance (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Ceded Credit Risk [Line Items]
Ceded premium earned	$ 1,407	$ 1,306	$ 1,274
Limit of aggregate losses under aggregate excess agreement	3,400
Catastrophe Reinsurance Sixth Layer
Ceded Credit Risk [Line Items]
Limit of aggregate losses under aggregate excess agreement	$ 324
Retention percentage of reinsurance limit	95.00%
Catastrophe Reinsurance Program
Ceded Credit Risk [Line Items]
Ceded premium earned	$ 376	$ 343	$ 344
Nationwide Per Occurrence Excess Catastrophe Reinsurance Program
Ceded Credit Risk [Line Items]
Limit of aggregate losses under aggregate excess agreement	4,860
Retention amount for catastrophe reinsurance agreement contracts	$ 500
Catastrophe Reinsurance First Five Layers
Ceded Credit Risk [Line Items]
Retention percentage of reinsurance limit	95.00%

Reserve for Life-Contingent Contract Benefits and Contractholder Funds - Key assumptions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Key contract provisions relating to contractholder funds:
Total contractholder funds	$ 17,692	$ 18,371	$ 19,434	$ 20,260
Interest-sensitive life insurance contract charges
Key contract provisions relating to contractholder funds:
Period for withdrawal or surrender charges	20 years
Total contractholder funds	$ 8,384	8,229
Equity-indexed life insurance \| Minimum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	0.00%
Equity-indexed life insurance \| Maximum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	10.00%
Other life insurance \| Minimum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	1.00%
Other life insurance \| Maximum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	6.00%
Fixed annuities contract charges
Key contract provisions relating to contractholder funds:
Percent of fixed annuities subject to market value adjustment for discretionary withdrawals	12.00%
Total contractholder funds	$ 8,845	9,681
Immediate Fixed Annuities \| Minimum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	0.50%
Immediate Fixed Annuities \| Maximum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	7.50%
Equity-indexed fixed annuities \| Minimum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	(8.00%)
Equity-indexed fixed annuities \| Maximum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	10.00%
Other fixed annuities \| Minimum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	0.10%
Other fixed annuities \| Maximum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	6.00%
Other investment contracts
Key contract provisions relating to contractholder funds:
Total contractholder funds	$ 463	$ 461
Other investment contracts \| Minimum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	1.70%
Other investment contracts \| Maximum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	10.30%

Reinsurance and Indemnification - Property and casualty reinsurance recoverable (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Reinsurance Retention Policy [Line Items]
Reinsurance recoverables related to ceded unpaid losses	$ 6,912	$ 7,155	$ 6,471	$ 6,184
Property-Liability
Reinsurance Retention Policy [Line Items]
Reinsurance and indemnification recoverables, net	7,020	7,270
Paid	112	111
Reinsurance recoverables related to ceded unpaid losses	6,910	7,150
Discontinued Lines and Coverages
Reinsurance Retention Policy [Line Items]
Allowance for uncollectible reinsurance	$ 60	$ 65

Reinsurance and Indemnification - Florida Excess Catastrophe Reinsurance Agreement (Details) $ in Millions	7 Months Ended	12 Months Ended
	Dec. 31, 2019 USD ($) hurricane	Dec. 31, 2019 USD ($) contract limit
Ceded Credit Risk [Line Items]
Limit of aggregate losses under aggregate excess agreement		$ 3,400
Aggregate Excess Catastrophe Florida Reinsurance Contract
Ceded Credit Risk [Line Items]
Retention percentage of reinsurance limit		80.00%
Limit of aggregate losses under aggregate excess agreement		$ 250
Florida Excess Catastrophe Reinsurance Agreement
Ceded Credit Risk [Line Items]
Contracts number \| contract		5
Number of contracts, traditional market \| contract		2
Limit of aggregate losses under aggregate excess agreement	$ 54
Catastrophe reinsurance aggregate, loss limit per contract year, percent		90.00%
Catastrophe reinsurance loss amount		$ 151
Florida Excess Catastrophe Reinsurance Agreement, Provisional
Ceded Credit Risk [Line Items]
Retention percentage of reinsurance limit		100.00%
Number of limits available per contract year \| limit		3
Limit of aggregate losses under aggregate excess agreement		$ 34
Retention amount for catastrophe reinsurance agreement contracts		$ 20
Catastrophe reinsurance agreement contracts, number of limits remaining per a contract year \| limit		2
Florida Excess Catastrophe Reinsurance Agreement, Two Largest Hurricanes
Ceded Credit Risk [Line Items]
Limit of aggregate losses under aggregate excess agreement	54
Retention amount for catastrophe reinsurance agreement contracts	$ 18
Number of hurricanes \| hurricane	2
Florida Excess Catastrophe Reinsurance Agreement, Personal Property Lines
Ceded Credit Risk [Line Items]
Retention percentage of reinsurance limit		100.00%
Limit of aggregate losses under aggregate excess agreement		$ 249
Retention amount for catastrophe reinsurance agreement contracts		$ 20

Supplemental Cash Flow Information (Tables)

12 Months Ended

Dec. 31, 2019

Supplemental Cash Flow Information [Abstract]

Schedule of supplemental cash flow information from collateralized securities received

The accompanying cash flows are included in cash flows from operating activities in the Consolidated Statements of Cash Flows along with the activities resulting from management of the proceeds as follows:



	For the years ended December 31,
($ in millions)	2019			2018			2017
Net change in proceeds managed
Net change in fixed income securities	$	80		$	234		$	259
Net change in short-term investments	(451		)	(568		)	(255		)
Operating cash flow (used) provided	(371		)	(334		)	4
Net change in cash	—			—			1
Net change in proceeds managed	$	(371	)	$	(334	)	$	5

Net change in liabilities
Liabilities for collateral, beginning of year	$	(1,458	)	$	(1,124	)	$	(1,129	)
Liabilities for collateral, end of year	(1,829		)	(1,458		)	(1,124		)
Operating cash flow provided (used)	$	371		$	334		$	(5	)

Acquisitions - Narrative (Details) - USD ($) $ in Millions	Nov. 30, 2018	Oct. 05, 2018	Dec. 31, 2019	Feb. 12, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Goodwill			$ 2,545		$ 2,530
PlumChoice, Inc
Business Acquisition [Line Items]
Goodwill	$ 23			$ 17
Payments to acquire businesses	$ 30
InfoArmor
Business Acquisition [Line Items]
Goodwill		$ 318
Payments to acquire businesses		525
Intangible assets		257
Customers relationships \| InfoArmor
Business Acquisition [Line Items]
Intangible assets		225
Technology-Based Intangible Assets \| InfoArmor
Business Acquisition [Line Items]
Intangible assets		$ 32

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes



Note 15	Income Taxes

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

Deferred income taxes result from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in years in which those temporary differences are expected to be recovered or settled. Deferred tax assets and liabilities are adjusted through income tax expense as changes in tax laws or rates are enacted.

Regulatory tax examinations The Internal Revenue Service (“IRS”) is currently examining the Company’s 2015 and 2016 federal income tax returns and is expected to complete its exam by mid-2020. The 2017 and 2018 audit cycle is expected to begin

mid-2020. The 2013 and 2014 federal income tax return audit is complete through the exam phase and the Company has reached a tentative agreement on one outstanding issue, pending final review by the Joint Committee of Taxation expected in 2020. Any adjustments that may result from IRS examinations of the Company’s tax returns are not expected to have a material effect on the consolidated financial statements.

Unrecognized tax benefits The Company recognizes tax positions in the consolidated financial statements only when it is more likely than not that the position will be sustained on examination by the relevant taxing authority based on the technical merits of the position. A position that meets this standard is measured at the largest amount of benefit that will more likely than not be realized on settlement. A liability is established for differences between positions taken in a tax return and amounts recognized in the consolidated financial statements.



Reconciliation of the change in the amount of unrecognized tax benefits
	For the years ended December 31,
($ in millions)	2019		2018		2017
Balance – beginning of year	$	70	$	55	$	10
Increase for tax positions taken in a prior year	—		3		34
Increase for tax positions taken in the current year	—		12		11
Balance – end of year	$	70	$	70	$	55

The Company believes it is reasonably possible that a decrease of up to $58 million in unrecognized tax benefits may occur within the next twelve months due to IRS settlements.



Components of the deferred income tax assets and liabilities
	As of December 31,
($ in millions)	2019			2018
Deferred tax assets
Unearned premium reserves	$	642		$	594
Pension	197			192
Accrued compensation	147			145
Discount on loss reserves	78			67
Other postretirement benefits	49			45
Net operating loss carryover	26			50
Other assets	54			57
Total deferred tax assets	1,193			1,150
Deferred tax liabilities
DAC	(847		)	(854		)
Unrealized net capital gains	(507		)	(2		)
Investments	(567		)	(278		)
Life and annuity reserves	(222		)	(194		)
Intangible assets	(98		)	(145		)
Other liabilities	(106		)	(102		)
Total deferred tax liabilities	(2,347		)	(1,575		)
Net deferred tax liability	$	(1,154	)	$	(425	)

Although realization is not assured, management believes it is more likely than not that the deferred tax assets will be realized based on the Company’s assessment that the deductions ultimately recognized for tax purposes will be fully utilized. As of December 31, 2019, the Company has U.S. federal and foreign net operating loss carryforwards of $93 million and $29 million, respectively.

The provisions of the Tax Cuts and Jobs Act of 2017 eliminated the 20-year carryforward period and made it indefinite for federal net operating losses generated in tax years after December 31, 2017. For such amounts generated prior to 2018, the 20-year carryforward period continues to apply.



Components of the net operating loss carryforwards as of December 31, 2019
($ in millions)	20-Year Carryforward Expires in 2025-2037		Indefinite Carryforward Period		Total
US Federal	$	72	$	21	$	93
Foreign	—		29		29
Total	$	72	$	50	$	122



Components of income tax expense
	For the years ended December 31,
($ in millions)	2019		2018			2017
Current	$	991	$	704		$	1,018
Deferred	251		(236		)	(23		)
Total income tax expense	$	1,242	$	468		$	995

The Company paid income taxes of $648 million, $731 million and $968 million in 2019, 2018 and 2017, respectively.

The Company had a current income tax payable of $124 million and a current tax receivable of $124 million as of December 31, 2019 and 2018, respectively.



Reconciliation of the statutory federal income tax rate to the effective income tax rate
	For the years ended December 31,
($ in millions)	2019					2018					2017
Income before income taxes	$	6,089				$	2,628				$	4,549

Statutory federal income tax rate on income from operations	1,279			21.0	%	552			21.0	%	1,592			35.0	%
Tax credits	(33		)	(0.5	)	(34		)	(1.3	)	(59		)	(1.3	)
Share-based payments	(24		)	(0.4	)	(16		)	(0.6	)	(63		)	(1.4	)
Tax-exempt income	(27		)	(0.4	)	(24		)	(0.9	)	(32		)	(0.7	)
State income taxes	41			0.7		27			1.0		21			0.5
Tax Legislation benefit	—			—		(29		)	(1.1	)	(509		)	(11.2	)
Non-deductible goodwill impairment	—			—		—			—		44			1.0
Other	6			—		(8		)	(0.3	)	1			—
Effective income tax rate on income from operations	$	1,242		20.4	%	$	468		17.8	%	$	995		21.9	%

Reinsurance and Indemnification (Tables)

12 Months Ended

Dec. 31, 2019

Reinsurance Disclosures [Abstract]

Effects of reinsurance on property-liability insurance premiums written and earned and life and annuity premiums and contract charges



Effects of reinsurance and indemnification on property and casualty premiums written and earned and life premiums and contract charges
	For the years ended December 31,
($ in millions)	2019			2018			2017
Property and casualty insurance premiums written
Direct	$	37,976		$	35,895		$	33,685
Assumed	95			99			64
Ceded	(1,117		)	(1,008		)	(1,007		)
Property and casualty insurance premiums written, net of recoverables	$	36,954		$	34,986		$	32,742

Property and casualty insurance premiums earned
Direct	$	37,104		$	34,977		$	33,221
Assumed	94			87			50
Ceded	(1,122		)	(1,016		)	(971		)
Property and casualty insurance premiums earned, net of recoverables	$	36,076		$	34,048		$	32,300

Life premiums and contract charges
Direct	$	2,074		$	2,001		$	1,894
Assumed	712			754			787
Ceded	(285		)	(290		)	(303		)
Life premiums and contract charges, net of recoverables	$	2,501		$	2,465		$	2,378

Summary of retention limits by period of policy issuance



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

Schedule of reinsurance premium ceded



Amounts ceded to Prudential
	As of December 31,
($ in millions)	2019		2018		2017
Premiums and contract charges	$	65	$	72	$	76
Contract benefits	4		87		7
Interest credited to contractholder funds	19		20		20
Operating costs and expenses	12		14		15

Summary of reinsurance recoverables on paid and unpaid benefits



Reinsurance recoverables on paid and unpaid benefits
	As of December 31,
($ in millions)	2019		2018
Annuities	$	1,305	$	1,381
Life insurance	749		776
Other	133		142
Total	$	2,187	$	2,299

Benefit Plans - Components of net periodic cost (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Components of net periodic cost
Service cost	$ 125	$ 117	$ 119
Interest cost	254	270	269
Expected return on plan assets	(403)	(427)	(419)
Amortization of prior service credit	(59)	(77)	(81)
Costs and expenses	(83)	(117)	(112)
Remeasurement of projected benefit obligation	946	(259)	414
Remeasurement of plan assets	(832)	727	(631)
Remeasurement gains and losses	114	468	(217)
Total net (benefit) cost	31	351	(329)
Pension benefits
Components of net periodic cost
Service cost	117	110	111
Interest cost	240	255	254
Expected return on plan assets	(403)	(427)	(419)
Amortization of prior service credit	(56)	(56)	(56)
Costs and expenses	(102)	(118)	(110)
Remeasurement of projected benefit obligation	927	(255)	406
Remeasurement of plan assets	(832)	727	(631)
Remeasurement gains and losses	95	472	(225)
Total net (benefit) cost	(7)	354	(335)
Postretirement benefits
Components of net periodic cost
Service cost	8	7	8
Interest cost	14	15	15
Expected return on plan assets	0	0	0
Amortization of prior service credit	(3)	(21)	(25)
Costs and expenses	19	1	(2)
Remeasurement of projected benefit obligation	19	(4)	8
Remeasurement of plan assets	0	0	0
Remeasurement gains and losses	19	(4)	8
Total net (benefit) cost	$ 38	$ (3)	$ 6

Income Taxes - Reconciliation of unrecognized tax benefits (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of the change in the amount of unrecognized tax benefits
Balance – beginning of year	$ 70	$ 55	$ 10
Increase for tax positions taken in a prior year	0	3	34
Increase for tax positions taken in the current year	0	12	11
Balance – end of year	$ 70	$ 70	$ 55

Summary of Significant Accounting Policies - Consolidated Statements of Financial Position (Details) - USD ($)	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained income	$ 48,074,000,000		$ 44,033,000,000
Unrealized foreign currency translation adjustments	(59,000,000)		(49,000,000)
Unamortized pension and other postretirement prior service credit	122,000,000		169,000,000
Total AOCI	1,950,000,000		118,000,000
Total shareholders’ equity	25,998,000,000		21,312,000,000		$ 22,551,000,000
Previously reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained income	49,713,000,000		45,708,000,000
Unrealized foreign currency translation adjustments	(68,000,000)		(64,000,000)
Unamortized pension and other postretirement prior service credit	(1,350,000,000)		(1,491,000,000)
Total AOCI	469,000,000		(1,557,000,000)
Total shareholders’ equity	26,156,000,000		21,312,000,000
Impact of change \| Impact of change
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained income	(1,639,000,000)		(1,675,000,000)
Unrealized foreign currency translation adjustments	9,000,000		15,000,000
Unamortized pension and other postretirement prior service credit	1,472,000,000		1,660,000,000
Total AOCI	1,481,000,000		1,675,000,000
Total shareholders’ equity	$ (158,000,000)	$ (41,000,000)	$ 0	$ 0

- Definition

Accumulated adjustment, net of tax, that results from the process of translating subsidiary financial statements and foreign equity investments into the reporting currency from the functional currency of the reporting entity, net of reclassification of realized foreign currency translation gains or losses.

+ References + Details

Other Comprehensive Income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Pre-tax
Other comprehensive income (loss)	$ 2,322	$ (1,094)	$ 481
Tax
Other comprehensive income (loss)	(490)	233	(169)
After-tax
Other comprehensive income (loss)	1,832	(861)	312
Unrealized net capital gains and losses
Pre-tax
Unrealized net holding during the period	2,807	(1,142)	866
Less: reclassification adjustment	413	(186)	374
Other comprehensive income (loss)	2,394	(956)	492
Tax
Unrealized net holding during the period	(592)	241	(304)
Less: reclassification adjustment	(87)	39	(131)
Other comprehensive income (loss)	(505)	202	(173)
After-tax
Unrealized net holding during the period	2,215	(901)	562
Less: reclassification adjustment	326	(147)	243
Other comprehensive income (loss)	1,889	(754)	319
Unrealized foreign currency translation adjustments
Pre-tax
Other comprehensive income (loss)	(13)	(61)	69
Tax
Other comprehensive income (loss)	3	13	(24)
After-tax
Other comprehensive income (loss)	(10)	(48)	45
Unamortized pension and other postretirement prior service credit
Pre-tax
Other comprehensive income (loss)	(59)	(77)	(80)
Tax
Other comprehensive income (loss)	12	18	28
After-tax
Other comprehensive income (loss)	$ (47)	$ (59)	$ (52)

Commitments, Guarantees and Contingent Liabilities - Florida Hurricane Catastrophe Fund and California Earthquake Authority (Details) - California Earthquake Authority - USD ($) $ in Millions	Oct. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Loss Contingencies
CEA capital balance	$ 6,010
Proceeds of revenue bonds	721
CEA existing reinsurance layer	8,260
Policy holder surcharge	1,000
Current estimated maximum CEA assessment	1,660
CEA capital balance threshold	350
CEA capital balance to be restored	350
Projected aggregate claim paying capacity	$ 17,650
Share of the CEA (as a percent)			9.80%
Maximum possible assessment		$ 162

Income Taxes - Components of the deferred tax assets and liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets
Unearned premium reserves	$ 642	$ 594
Pension	197	192
Accrued compensation	147	145
Discount on loss reserves	78	67
Other postretirement benefits	49	45
Net operating loss carryover	26	50
Other assets	54	57
Total deferred tax assets	1,193	1,150
Deferred tax liabilities
DAC	(847)	(854)
Unrealized net capital gains	(507)	(2)
Investments	(567)	(278)
Life and annuity reserves	(222)	(194)
Intangible assets	(98)	(145)
Other liabilities	(106)	(102)
Total deferred tax liabilities	(2,347)	(1,575)
Net deferred tax liability	$ (1,154)	$ (425)

Commitments, Guarantees and Contingent Liabilities

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments, Guarantees and Contingent Liabilities



Note 14	Commitments, 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.

The Company routinely reviews its exposure to assessments from these plans, facilities and government programs. Underwriting results related to these arrangements, which tend to be adverse, have been immaterial to the Company’s results of operations. Because of the Company’s participation, it may be exposed to losses that surpass the capitalization of these facilities and/or assessments from these facilities.

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

Louisiana Citizens Louisiana Citizens Property Insurance Corporation (“LA Citizens”) can levy a regular

assessment on participating companies for a deficit in any calendar year up to a maximum of the greater of 10% of the calendar year deficit or 10% of Louisiana direct property premiums industry-wide for the prior calendar year. If the plan year deficit exceeds the amount that can be recovered through Regular Assessments, LA Citizens may fund the remaining deficit by issuing revenue assessment bonds in the capital markets. LA Citizens then declares Emergency Assessments each year to provide debt service on the bonds until they are retired. Companies writing assessable lines must surcharge their policyholders Emergency Assessments in the percentage established annually by LA Citizens and must remit amounts collected to the bond trustee on a quarterly basis. Emergency assessments to pay off bonds issued in 2007 for the hurricanes of 2005 will continue until 2025.

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

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

As of October 31, 2019, the CEA’s capital balance was approximately $6.01 billion. Should losses arising from an earthquake cause a deficit in the CEA, an

additional $721 million would be obtained from the proceeds of revenue bonds the CEA may issue, an existing $8.26 billion reinsurance layer, $1.0 billion from policyholders surcharge, and finally, if needed, assessments on participating insurance companies. Participating insurers are required to pay an assessment, currently estimated not to exceed $1.66 billion, if the capital of the CEA falls below $350 million. Within the limits previously described, the assessment could be intended to restore the CEA’s capital to a level of $350 million. There is no provision that allows insurers to recover assessments through a premium surcharge or other mechanism. The CEA’s projected aggregate claim paying capacity is $17.65 billion as of October 31, 2019 and if an event were to result in claims greater than its capacity, affected policyholders may be paid a prorated portion of their covered losses, paid on an installment basis, or no payments may be made if the claim paying capacity of the CEA is insufficient.

All future assessments on participating CEA insurers are based on their CEA insurance market share as of December 31 of the preceding year. As of December 31, 2018, the Company’s market share was 9.8%. The Company does not expect its market share to materially change. At this level, the Company’s maximum possible CEA assessment would be $162 million during 2020. These amounts are re-evaluated by the board of directors of the CEA on an annual basis. Accordingly, assessments from the CEA for a particular quarter or annual period may be material to the results of operations and cash flows, but not the financial position of the Company. Management believes the Company’s exposure to earthquake losses in California has been significantly reduced as a result of its participation in the CEA.

Texas Windstorm Insurance Association The Company participates as a member of the Texas Windstorm Insurance Association (“TWIA”), which provides wind and hail property coverage to coastal risks unable to procure coverage in the voluntary market. Wind and hail coverage is written on a TWIA-issued policy. TWIA follows a funding structure first utilizing currently available funds set aside from current and prior years. Under the current law, to the extent losses exceed premiums received from policyholders, TWIA utilizes a combination of reinsurance, TWIA issued securities, as well as member and policyholder assessments to fund loss payments.

During 2019, the TWIA Board announced assessments primarily related to Hurricane Harvey for which the Company’s share was $12 million. These costs were recorded in property and casualty insurance claims and claims expense as catastrophe losses on the Consolidated Statements of Operations. Any assessments from TWIA for a particular quarter or annual period may be material to the results of operations and cash flows, but not to the financial position of the Company.

Texas Fair Plan Association The Company participates as a member of the Texas Fair Plan Association (“FAIR Plan”), which provides residential property insurance to inland areas designated as

underserved by the Commissioner of Insurance and the applicant(s) are unable to procure coverage in the voluntary market. The FAIR Plan issues insurance policies, like an insurance company, and it also functions as a pooling mechanism that allocates premiums, claims and expenses back to the insurance industry. As a result of the losses incurred related to Hurricane Harvey, in 2017 the FAIR Plan Board unanimously voted to approve its first ever member assessment of which the Company’s share was $8 million based on total direct premium written in Texas. Insurers are permitted to recover the assessment through either a premium surcharge applied to existing customers over a three-year period or increased rates, but the ability to fully recover the assessment may be impacted by market conditions or other factors.

North Carolina Joint Underwriters Association The North Carolina Joint Underwriters Association (“NCJUA”) was created to provide property insurance for properties (other than the state’s beach and coastal areas) that insurers are not otherwise willing to insure. All insurers licensed to write property insurance in North Carolina are members of the NCJUA. Premiums, losses and expenses of the NCJUA are shared by the member companies in proportion to their respective North Carolina property insurance writings. Member companies participate in plan deficits or surpluses based on their participation ratios, which are determined annually. The Company had a $5 million receivable from the NCJUA at December 31, 2019 representing our participation in the NCJUA’s deficit of $29 million for all open years.

North Carolina Insurance Underwriting Association The North Carolina Insurance Underwriting Association (“NCIUA”) provides windstorm and hail coverage as well as homeowners policies for properties located in the state’s beach and coastal areas that insurers are not otherwise willing to insure. All insurers licensed to write residential and commercial property insurance in North Carolina are members of the NCIUA. Members are assessed in proportion to their North Carolina residential and commercial property insurance writings, which is determined annually and varies by coverage, for plan deficits. As of December 31, 2019, the NCIUA had a surplus of $439 million. No member company is entitled to the distribution of any portion of the Association’s surplus. The Company does not recognize any interest related to this surplus. Legislation in 2009 capped insurers’ assessments for losses incurred in any calendar year at $1.00 billion. Subsequent to an industry assessment of $1.00 billion, if the plan continues to require funding, it may authorize insurers to assess a 10% catastrophe recovery charge on each property insurance policy statewide to be remitted to the plan.

Other programs The Company is also subject to assessments by the NCRF and the FHCF, which are described in Note 10.

Guaranty funds

Under state insurance guaranty fund laws, insurers doing business in a state can be assessed, up to prescribed limits, for certain obligations of insolvent

insurance companies to policyholders and claimants. Amounts assessed to each company are typically related to its proportion of business written in each state. The Company’s policy is to accrue assessments when the entity for which the insolvency relates has met its state of domicile’s statutory definition of insolvency, the amount of the loss is reasonably estimable and the related premium upon which the assessment is based is written. In most states, the definition is met with a declaration of financial insolvency by a court of competent jurisdiction. In certain states there must also be a final order of liquidation. Since most states allow a credit against premium or other state related taxes for assessments, an asset is recorded based on paid and accrued assessments for the amount the Company expects to recover on the respective state’s tax return and is realized over the period allowed by each state. As of December 31, 2019 and 2018, the liability balance included in other liabilities and accrued expenses was $13 million and $12 million, respectively. The related premium tax offsets included in other assets were $15 million and $16 million as of December 31, 2019 and 2018, respectively.

Guarantees

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.

Related to the sale of Lincoln Benefit Life Company 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.

The aggregate liability balance related to all guarantees was not material as of December 31, 2019.

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 agency and broker compensation, regulate the nature of and amount of investments, impose fines and penalties for unintended errors or mistakes, impose additional regulations regarding cybersecurity and privacy, 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, international agencies, and other organizations, including but not limited to the SEC, the Financial Industry Regulatory Authority, 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 $75 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 managing various disputes in Florida that raise challenges to the Company’s practices, processes, and procedures relating to claims for personal injury protection benefits under Florida auto policies. Medical providers continue to pursue litigation under various theories that challenge the amounts that the Company pays under the personal injury protection benefits. There are pending putative class actions and litigation involving individual plaintiffs. The Company is vigorously asserting both procedural and substantive defenses to these lawsuits.

Other proceedings The stockholder derivative actions described below are disclosed pursuant to SEC disclosure requirements for these types of matters. The putative class action alleging violations of the federal securities laws is disclosed because it involves similar allegations to those made in the stockholder derivative actions.

Biefeldt / IBEW Consolidated Action. Two separately filed stockholder derivative actions have been consolidated into a single proceeding that is pending in the Circuit Court for Cook County, Illinois, Chancery Division. The original complaint in the first-filed of those actions, Biefeldt v. Wilson, et al., was filed on August 3, 2017, in that court by a plaintiff alleging that she is a stockholder of the Company. On June 29, 2018, the court granted defendants’ motion to dismiss that complaint for failure to make a pre-suit demand on the Allstate Board before instituting the suit, but granted the plaintiff permission to file an amended complaint. The original complaint in IBEW Local No. 98 Pension Fund v. Wilson, et al., was filed on April 12, 2018, in the same court by another plaintiff alleging to be a stockholder of the Company. After the court issued its dismissal decision in the Biefeldt action, the plaintiffs agreed to consolidate the two actions and filed a consolidated amended complaint naming the Company’s chairman, president and chief executive officer, its former president, and certain present or former members of the board of directors. In that complaint, the plaintiffs allege that the directors and officer defendants breached their fiduciary duties to the Company in connection with allegedly material misstatements or omissions concerning the Company’s automobile insurance claim frequency statistics and the reasons for a claim frequency increase for Allstate

brand auto insurance between October 2014 and August 3, 2015. The factual allegations are substantially similar to those at issue in In re The Allstate Corp. Securities Litigation. The plaintiffs further allege that a senior officer and several outside directors engaged in stock option exercises allegedly while in possession of material nonpublic information. The plaintiffs seek, on behalf of the Company, an unspecified amount of damages and various forms of equitable relief. Defendants moved to dismiss the consolidated complaint on September 24, 2018 for failure to make a demand on the Allstate Board. On May 14, 2019, the court granted the defendants’ motion to dismiss the complaint, but allowed the plaintiffs leave to file a second consolidated amended complaint by June 11, 2019. On June 3, 2019, the plaintiffs filed a motion to stay the action, or in the alternative defer the filing of the second consolidated amended complaint, to allow the plaintiffs to conduct an inspection of the Company’s books and records. The parties reached a compromise by which the Company produced certain board materials and the deadline for the plaintiffs to file the second consolidated amended complaint was extended. On September 17, 2019, the plaintiffs filed a second consolidated amended complaint. Defendants moved to dismiss the complaint on November 1, 2019 for failure to make a demand on the Allstate Board.

In Sundquist v. Wilson, et al., another plaintiff alleging to be a stockholder of the Company filed a stockholder derivative complaint in the United States District Court for the Northern District of Illinois on May 21, 2018. The plaintiff seeks, on behalf of the Company, an unspecified amount of damages and various forms of equitable relief. The complaint names as defendants the Company’s chairman, president and chief executive officer, its former president, its former chief financial officer, who is now the Company’s vice chairman, and certain present or former members of the board of directors.

The complaint alleges breaches of fiduciary duty based on allegations similar to those asserted in In re The Allstate Corp. Securities Litigation as well as state law “misappropriation” claims based on stock option transactions by the Company’s chairman, president and chief executive officer, its former chief financial officer, who is now the Company’s vice chairman, and certain members of the board of directors. Defendants moved to dismiss and/or stay the complaint on August 7, 2018. On December 4, 2018, the court granted the defendants’ motion and stayed the case pending the resolution of the consolidated Biefeldt/IBEW matter.

Mims v. Wilson, et al., is an additional stockholder derivative action filed on February 12, 2020 in the United States District Court for the Northern District of Illinois. The plaintiff seeks, on behalf of the Company, an unspecified amount of damages and various forms of equitable relief. The complaint names as defendants the Company’s chairman, president and chief executive officer, its former president, its former chief financial officer, who is now the Company’s vice chairman, and certain present or former members of the board of directors. The complaint alleges breaches

of fiduciary duty and unjust enrichment based on allegations similar to those asserted in In re The Allstate Corp. Securities Litigation.

In re The Allstate Corp. Securities Litigation is a certified class action filed on November 11, 2016 in the United States District Court for the Northern District of Illinois against the Company and two of its officers asserting claims under the federal securities laws. Plaintiffs allege that they purchased Allstate common stock during the class period and suffered damages as the result of the conduct alleged. Plaintiffs seek an unspecified amount of damages, costs, attorney’s fees, and other relief as the court deems appropriate. 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 between October 2014 and August 3, 2015.

Plaintiffs’ further allege that a senior officer engaged in stock option exercises during that time allegedly while in possession of material nonpublic information about Allstate brand auto insurance claim frequency. The Company, its chairman, president and chief executive officer, and its former president are the named defendants. After the court denied their motion to dismiss on February 27, 2018, defendants answered the complaint, denying plaintiffs’ allegations that there was any misstatement or omission or other misconduct. On June 22, 2018, plaintiffs filed their motion for class certification, which was fully briefed as of January 11, 2019. On September 12, 2018, the court allowed the lead plaintiffs to amend their complaint to add the City of Providence Employee Retirement System as a proposed class representative.

The amended complaint was filed the same day. On March 26, 2019, the court granted plaintiffs’ motion for class certification and certified a class consisting of all persons who purchased Allstate common stock between October 29, 2014 and August 3, 2015. On April 9, 2019, defendants filed with the Seventh Circuit Court of Appeals a petition for permission to appeal this ruling pursuant to Federal Rule of Civil Procedure 23 (f) and the Court of Appeals granted that petition on April 25, 2019. The appeal was fully briefed as of July 31, 2019, and the Seven Circuit Court of Appeals heard oral argument on September 18, 2019.

Asbestos and environmental

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.

Schedule II - Condensed Financial Information of Registrant - Financial Position (Details) - USD ($) $ / shares in Units, $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Assets
Fixed income securities, at fair value (amortized cost $458 and $355)	$ 59,044	$ 57,170
Short-term investments	4,256	3,027
Cash	338	499
Total assets	119,950	112,249
Liabilities
Long-term debt	6,631	6,451
Total liabilities	93,952	90,937
Shareholders’ equity
Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized, 92.5 thousand and 79.8 thousand shares issued and outstanding, $2,313 and $1,995 aggregate liquidation preference	2,248	1,930
Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 319 million and 332 million shares outstanding	9	9
Additional capital paid-in	3,463	3,310
Retained income	48,074	44,033
Deferred Employee Stock Ownership Plan (“ESOP”) expense	0	(3)
Treasury stock, at cost (581 million and 568 million shares)	(29,746)	(28,085)
Accumulated other comprehensive income:
Unrealized net capital gains and losses	1,887	(2)
Unrealized foreign currency translation adjustments	(59)	(49)
Unamortized pension and other postretirement prior service credit	122	169
Total accumulated other comprehensive income	1,950	118
Total shareholders’ equity	25,998	21,312	$ 22,551
Total liabilities and shareholders’ equity	119,950	112,249
Additional balance sheet disclosures:
Short-term, at fair value, amortized cost (in dollars)	$ 4,256	$ 3,027
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)	92,500	79,800
Preferred stock, shares outstanding (in shares)	92,500	79,800
Preferred stock, shares aggregate liquidation preference (in dollars)	$ 2,313	$ 1,995
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)	319,000,000	332,000,000
Treasury stock, shares (in shares)	581,000,000	568,000,000
Allstate Corporation
Assets
Investments in subsidiaries	$ 33,428	$ 29,301
Fixed income securities, at fair value (amortized cost $458 and $355)	466	356
Short-term investments	702	285
Cash	2	0	$ 0	$ 2
Receivable from subsidiaries	448	426
Deferred income taxes	230	225
Other assets	86	92
Total assets	35,362	30,685
Liabilities
Long-term debt	6,631	6,451
Pension and other postretirement benefit obligations	1,081	1,050
Deferred compensation	327	281
Payable to subsidiaries	14	3
Notes due to subsidiaries	1,000	1,250
Dividends payable to shareholders	199	198
Other liabilities	112	140
Total liabilities	9,364	9,373
Shareholders’ equity
Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized, 92.5 thousand and 79.8 thousand shares issued and outstanding, $2,313 and $1,995 aggregate liquidation preference	2,248	1,930
Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 319 million and 332 million shares outstanding	9	9
Additional capital paid-in	3,463	3,310
Retained income	48,074	44,033
Deferred Employee Stock Ownership Plan (“ESOP”) expense	0	(3)
Treasury stock, at cost (581 million and 568 million shares)	(29,746)	(28,085)
Accumulated other comprehensive income:
Unrealized net capital gains and losses	1,887	(2)
Unrealized foreign currency translation adjustments	(59)	(49)
Unamortized pension and other postretirement prior service credit	122	169
Total accumulated other comprehensive income	1,950	118
Total shareholders’ equity	25,998	21,312
Total liabilities and shareholders’ equity	35,362	30,685
Additional balance sheet disclosures:
Fixed income securities, at fair value, amortized cost (in dollars)	458	355
Short-term, at fair value, amortized cost (in dollars)	$ 702	$ 285
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)	92,500	79,800
Preferred stock, shares outstanding (in shares)	92,500	79,800
Preferred stock, shares aggregate liquidation preference (in dollars)	$ 2,313	$ 1,995
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)	319,000,000	332,000,000
Treasury stock, shares (in shares)	581,000,000	568,000,000

Statutory Financial Information and Dividend Limitations (Tables)

12 Months Ended

Dec. 31, 2019

Statutory Financial Information and Dividend Limitations [Abstract]

Statutory net income and capital and surplus



Statutory net income (loss) and capital and surplus of Allstate’s domestic insurance subsidiaries
	Net income (loss)						Capital and surplus
($ in millions)	2019		2018		2017		2019		2018
Amounts by major business type:
Property and casualty insurance	$	3,989	$	2,939	$	3,050	$	16,192	$	14,328
Life insurance, annuities and voluntary accident and health insurance	422		465		327		4,208		3,819
Amount per statutory accounting practices	$	4,411	$	3,404	$	3,377	$	20,400	$	18,147

Schedule IV - Reinsurance (Details) - USD ($) $ in Millions	12 Months Ended
Schedule IV - Reinsurance (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Life insurance in force
Gross amount	$ 219,785	$ 207,434	$ 188,186
Ceded to other companies	74,021	81,186	86,642
Assumed from other companies	229,419	243,161	259,671
Net amount	$ 375,183	$ 369,409	$ 361,215
Percentage of amount assumed to net	61.10%	65.80%	71.90%
Premiums and contract charges:
Gross amount	$ 39,178	$ 36,978	$ 35,115
Ceded premium earned	1,407	1,306	1,274
Assumed from other companies	806	841	837
Net amount	$ 38,577	$ 36,513	$ 34,678
Percentage of amount assumed to net	2.10%	2.30%	2.40%
Reinsurance or coinsurance income net of premium ceded	$ 0	$ 0	$ 0
Life insurance
Premiums and contract charges:
Gross amount	1,062	994	936
Ceded premium earned	262	266	276
Assumed from other companies	712	754	787
Net amount	$ 1,512	$ 1,482	$ 1,447
Percentage of amount assumed to net	47.10%	50.90%	54.40%
Accident and health insurance
Premiums and contract charges:
Gross amount	$ 1,012	$ 1,007	$ 958
Ceded premium earned	23	24	27
Assumed from other companies	0	0	0
Net amount	$ 989	$ 983	$ 931
Percentage of amount assumed to net	0.00%	0.00%	0.00%
Property and casualty insurance
Premiums and contract charges:
Gross amount	$ 37,104	$ 34,977	$ 33,221
Ceded premium earned	1,122	1,016	971
Assumed from other companies	94	87	50
Net amount	$ 36,076	$ 34,048	$ 32,300
Percentage of amount assumed to net	0.30%	0.30%	0.20%

Quarterly Results (unaudited) (Tables)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results



	First Quarter				Second Quarter				Third Quarter				Fourth Quarter
($ in millions, except per share data)	2019		2018		2019		2018		2019		2018		2019		2018
Revenues	$	10,990	$	9,770	$	11,144	$	10,099	$	11,069	$	10,465	$	11,472	$	9,481
Net income (loss) applicable to common shareholders	1,261		977		821		678		889		942		1,707		(585		)
Earnings per common share - Basic	3.79		2.76		2.47		1.94		2.71		2.72		5.32		(1.71		)
Earnings per common share - Diluted	3.74		2.71		2.44		1.91		2.67		2.68		5.23		(1.71		)

Reinsurance and Indemnification - New Jersey Excess Catastrophe Reinsurance Agreement (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) contract reinstatement
Reinsurance Retention Policy [Line Items]
Limit of aggregate losses under aggregate excess agreement	$ 3,400
New Jersey Agreement
Reinsurance Retention Policy [Line Items]
Contracts number \| contract	2
Limit of aggregate losses under aggregate excess agreement	$ 400
New Jersey Agreement Contract One
Reinsurance Retention Policy [Line Items]
Retention percentage of reinsurance limit	31.67%
Retention amount for catastrophe reinsurance agreement contracts	$ 145
Number of reinstatements each year for each contract \| reinstatement	1
New Jersey Agreement Contract Two
Reinsurance Retention Policy [Line Items]
Retention percentage of reinsurance limit	31.67%
Retention amount for catastrophe reinsurance agreement contracts	$ 150
Number of reinstatements each year for each contract \| reinstatement	1
New Jersey Agreement Contract Three
Reinsurance Retention Policy [Line Items]
Retention percentage of reinsurance limit	31.66%
Retention amount for catastrophe reinsurance agreement contracts	$ 150
Number of reinstatements each year for each contract \| reinstatement	1

Equity Incentive Plans - Changes in restricted stock units (Details) - Restricted stock units - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stock units activity
Outstanding at the beginning of the period (in shares)	957
Granted (in shares)	271
Vested (in shares)	(308)
Forfeited (in shares)	(43)
Outstanding at the end of the period (in shares)	877	957
Weighted average grant date fair value
Weighted average grant date fair value, nonvested at the beginning of the period (in dollars per share)	$ 74.58
Weighted average grant date fair value, granted (in dollars per share)	92.97	$ 93.16	$ 80.12
Weighted average grant date fair value, vested (in dollars per share)	62.89
Weighted average grant date fair value, forfeited (in dollars per share)	84.75
Weighted average grant date fair value, nonvested at the end of the period (in dollars per share)	$ 83.87	$ 74.58
Total fair value of restricted stock and restricted stock units vested	$ 29	$ 47	$ 58

Fair Value of Assets and Liabilities - Assets and liabilities measured at fair value on a recurring and non-recurring basis (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Assets
Fixed income securities	$ 59,044	$ 57,170
Equity securities	8,162	5,036
Short-term investments	4,256	3,027
Separate account assets	3,044	$ 2,805
Counterparty and cash collateral netting	(40)
Derivative Asset Net of Offsets and Securities Collateral	$ (40)
Assets as a percent of assets measured at fair value	(0.10%)	0.00%
Total	$ 76,461	$ 69,936
Liabilities
Liabilities as a percent of liabilities measured at fair value	(2.20%)	(2.10%)
U.S. government and agencies
Assets
Fixed income securities	$ 5,086	$ 5,517
Municipal
Assets
Fixed income securities	8,620	9,169
Foreign government
Assets
Fixed income securities	979	747
ABS
Assets
Fixed income securities	862	1,045
MBS
Assets
Fixed income securities	419	$ 534
Quoted prices in active markets for identical assets (Level 1)
Assets
Total assets at fair value	$ 17,081
Assets as a percent of assets measured at fair value	22.90%	19.90%
Liabilities
Liabilities as a percent of liabilities measured at fair value	0.00%	0.30%
Significant other observable inputs (Level 2)
Assets
Total assets at fair value	$ 56,868
Assets as a percent of assets measured at fair value	76.20%	79.10%
Liabilities
Liabilities as a percent of liabilities measured at fair value	15.70%	22.10%
Significant unobservable inputs (Level 3)
Assets
Total assets at fair value	$ 738
Assets as a percent of assets measured at fair value	1.00%	1.00%
Liabilities
Liabilities as a percent of liabilities measured at fair value	86.50%	79.70%
Investments reported at NAV
Assets
Investments measured using the net asset value practical expedient	$ 1,814	$ 1,779
Recurring
Assets
Other investments: Free-standing derivatives, Counterparty and cash collateral netting	40	23
Counterparty and cash collateral netting		(23)
Liabilities
Counterparty and cash collateral netting	12	6
Recurring \| Quoted prices in active markets for identical assets (Level 1)
Assets
Fixed income securities	4,689	5,085
Equity securities	7,407	4,364
Short-term investments	1,940	1,338
Other investments: Free-standing derivatives	0	0
Separate account assets	3,044	2,805
Other assets	1	2
Total assets at fair value		13,594
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	0	0
Other liabilities: Free-standing derivatives	0	(1)
Total liabilities at fair value	0	(1)
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| U.S. government and agencies
Assets
Fixed income securities	4,689	5,085
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
Assets
Fixed income securities	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| MBS
Assets
Fixed income securities	0	0
Recurring \| Significant other observable inputs (Level 2)
Assets
Fixed income securities	54,013	51,760
Equity securities	384	331
Short-term investments	2,291	1,659
Other investments: Free-standing derivatives	180	139
Separate account assets	0	0
Other assets	0	0
Total assets at fair value		53,889
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	0	0
Other liabilities: Free-standing derivatives	(84)	(62)
Total liabilities at fair value	(84)	(62)
Recurring \| Significant other observable inputs (Level 2) \| U.S. government and agencies
Assets
Fixed income securities	397	432
Recurring \| Significant other observable inputs (Level 2) \| Municipal
Assets
Fixed income securities	8,558	9,099
Recurring \| Significant other observable inputs (Level 2) \| Corporate - public
Assets
Fixed income securities	30,819	29,200
Recurring \| Significant other observable inputs (Level 2) \| Corporate - privately placed
Assets
Fixed income securities	12,084	10,798
Recurring \| Significant other observable inputs (Level 2) \| Foreign government
Assets
Fixed income securities	979	747
Recurring \| Significant other observable inputs (Level 2) \| ABS
Assets
Fixed income securities	797	976
Recurring \| Significant other observable inputs (Level 2) \| MBS
Assets
Fixed income securities	379	508
Recurring \| Significant unobservable inputs (Level 3)
Assets
Fixed income securities	342	325
Equity securities	371	341
Short-term investments	25	30
Other investments: Free-standing derivatives	0	1
Separate account assets	0	0
Other assets	0	0
Total assets at fair value		697
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	(462)	(224)
Other liabilities: Free-standing derivatives	0	0
Total liabilities at fair value	(462)	(224)
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	62	70
Recurring \| Significant unobservable inputs (Level 3) \| Corporate - public
Assets
Fixed income securities	61	70
Recurring \| Significant unobservable inputs (Level 3) \| Corporate - privately placed
Assets
Fixed income securities	114	90
Recurring \| Significant unobservable inputs (Level 3) \| Foreign government
Assets
Fixed income securities	0	0
Recurring \| Significant unobservable inputs (Level 3) \| ABS
Assets
Fixed income securities	65	69
Recurring \| Significant unobservable inputs (Level 3) \| MBS
Assets
Fixed income securities	40	$ 26
Fair value
Assets
Total assets at fair value	$ 74,647
Assets as a percent of assets measured at fair value	100.00%	100.00%
Liabilities
Liabilities as a percent of liabilities measured at fair value	100.00%	100.00%
Fair value \| Recurring
Assets
Fixed income securities	$ 59,044	$ 57,170
Equity securities	8,162	5,036
Short-term investments	4,256	3,027
Other investments: Free-standing derivatives	140	117
Separate account assets	3,044	2,805
Other assets	1	2
Total assets at fair value		68,157
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	(462)	(224)
Other liabilities: Free-standing derivatives	(72)	(57)
Total liabilities at fair value	(534)	(281)
Fair value \| Recurring \| U.S. government and agencies
Assets
Fixed income securities	5,086	5,517
Fair value \| Recurring \| Municipal
Assets
Fixed income securities	8,620	9,169
Fair value \| Recurring \| Corporate - public
Assets
Fixed income securities	30,880	29,270
Fair value \| Recurring \| Corporate - privately placed
Assets
Fixed income securities	12,198	10,888
Fair value \| Recurring \| Foreign government
Assets
Fixed income securities	979	747
Fair value \| Recurring \| ABS
Assets
Fixed income securities	862	1,045
Fair value \| Recurring \| MBS
Assets
Fixed income securities	$ 419	$ 534

Income Taxes - Components of income tax expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Components of income tax expense (benefit)
Current	$ 991	$ 704	$ 1,018
Deferred	251	(236)	(23)
Total income tax expense	$ 1,242	$ 468	$ 995

General (Details)	12 Months Ended
General (Details)	Dec. 31, 2019 segment
General
Number of reportable segments	7

Capital Structure (Tables)

12 Months Ended

Dec. 31, 2019

Capital Structure

Total debt outstanding



Total debt outstanding
	As of December 31,
($ in millions)	2019			2018
7.450% Senior Notes, due 2019 ⁽¹⁾	$	—		$	317
Floating Rate Senior Notes, due 2021⁽¹⁾	250			250
Floating Rate Senior Notes, due 2023 ⁽¹⁾	250			250
3.150% Senior Notes, due 2023 ⁽¹⁾	500			500
Due after one year through five years	1,000			1,317
3.280% Senior Notes, due 2026 ⁽¹⁾	550			550
Due after five years through ten years	550			550
6.125% Senior Notes, due 2032 ⁽¹⁾	159			159
5.350% Senior Notes due 2033 ⁽¹⁾	323			323
5.550% Senior Notes due 2035 ⁽¹⁾	546			546
5.950% Senior Notes, due 2036 ⁽¹⁾	386			386
6.900% Senior Debentures, due 2038	165			165
5.200% Senior Notes, due 2042 ⁽¹⁾	62			62
4.500% Senior Notes, due 2043 ⁽¹⁾	500			500
4.200% Senior Notes, due 2046 ⁽¹⁾	700			700
3.850% Senior Notes, due 2049	500			—
5.100% Subordinated Debentures, due 2053	500			500
5.750% Subordinated Debentures, due 2053	800			800
6.500% Junior Subordinated Debentures, due 2067	500			500
Due after ten years	5,141			4,641

Long-term debt total principal	6,691			6,508
Debt issuance costs	(60		)	(57		)
Total long-term debt	6,631			6,451
Short-term debt ⁽²⁾	—			—
Total debt	$	6,631		$	6,451

⁽¹⁾

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

⁽²⁾

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

Schedule of debt maturities for each of the next five years and thereafter



Debt maturities for each of the next five years and thereafter
($ in millions)
2020	$	—
2021	250
2022	—
2023	750
2024	—
Thereafter	5,691
Total long-term debt principal	$	6,691

Schedule of noncumulative outstanding preferred stock



Total preferred stock outstanding
	As of December 31,		Aggregate liquidation preference ($ in millions)						Dividend per depository share ⁽¹⁾						Aggregate dividend payment ($ in millions)
	2019	2018	2019		2018		Dividend rate		2019		2018		2017		2019			2018			2017
Series A	11,500	11,500	$	287.5	$	287.5	5.625	%	$	1.41	$	1.41	$	1.41	$	16		$	16		$	16
Series C	—	—	—		—		6.750	%	—		1.69		1.69		—			26		⁽²⁾	26
Series D	—	5,400	—		135.0		6.625	%	1.66		1.66		1.66		9		⁽²⁾	9			9
Series E	—	29,900	—		747.5		6.625	%	1.66		1.66		1.66		49		⁽²⁾	49			49
Series F	—	10,000	—		250.0		6.250	%	1.56		1.56		1.56		16		⁽²⁾	16			16
Series G	23,000	23,000	575.0		575.0		5.625	%	1.41		1.41		—		32			18			—
Series H	46,000	—	1,150.0		—		5.100	%	1.28		—		—		12			—			—
Series I	12,000	—	300.0		—		4.750	%	1.19		—		—		—			—			—
Total	92,500	79,800	$	2,313	$	1,995									$	134	⁽²⁾	$	134	⁽²⁾	$	116


⁽¹⁾	Each depositary share represents a 1/1,000^th interest in a share of preferred stock.

⁽²⁾

Excludes $37 million and $13 million in 2019 and 2018, respectively, related to original issuance costs in preferred stock dividends on the Consolidated Statements of Operations and Consolidated Statements of Shareholders’ Equity as a result of the preferred stock redemptions.

Summary of Significant Accounting Policies - Earnings per common share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Numerator:
Net income									$ 4,847	$ 2,160	$ 3,554
Less: Preferred stock dividends									169	148	116
Net income applicable to common shareholders	$ 1,707	$ 889	$ 821	$ 1,261	$ (585)	$ 942	$ 678	$ 977	$ 4,678	$ 2,012	$ 3,438
Denominator:
Weighted average common shares outstanding (in shares)									328.2	347.8	362.0
Effect of dilutive potential common shares:
Stock options (in shares)									3.2	3.6	4.3
Restricted stock units(non-participating) and performance stock awards (in shares)									2.1	1.8	1.5
Weighted average common and dilutive potential common shares outstanding (in shares)									333.5	353.2	367.8
Earnings per common share - Basic (in dollars per share)	$ 5.32	$ 2.71	$ 2.47	$ 3.79	$ (1.71)	$ 2.72	$ 1.94	$ 2.76	$ 14.25	$ 5.78	$ 9.50
Earnings per common share - Diluted (in dollars per share)	$ 5.23	$ 2.67	$ 2.44	$ 3.74	$ (1.71)	$ 2.68	$ 1.91	$ 2.71	$ 14.03	$ 5.70	$ 9.35
Other Earnings Per Share Disclosures
Antidilutive stock options, exercise price exceeds market price (in shares)									3.7	2.0	1.5

Reporting Segments - Reportable segments financial performance (Details) - USD ($) $ in Millions	3 Months Ended									12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting Information
Net investment income										$ 3,159	$ 3,240	$ 3,401
Goodwill impairment									$ (125)	(106)	0	(125)
Net income applicable to common shareholders	$ 1,707	$ 889	$ 821	$ 1,261	$ (585)	$ 942	$ 678	$ 977		4,678	2,012	3,438
Allstate Protection
Segment Reporting Information
Underwriting income										2,912	2,343	2,304
Discontinued Lines and Coverages
Segment Reporting Information
Underwriting income										(108)	(90)	(99)
Property-Liability
Segment Reporting Information
Underwriting income										2,804	2,253	2,205
Net investment income										1,533	1,464	1,478
Income tax expense on operations										(887)	(747)	(1,187)
Realized capital gains and losses, after-tax										1,161	(500)	272
Gain (loss) on disposition of operations, after-tax										0	0	9
Tax Legislation (expense) benefit										0	(5)	36
Net income applicable to common shareholders										4,611	2,465	2,813
Service Businesses
Segment Reporting Information
Net investment income										42	27	16
Realized capital gains and losses, after-tax										25	(9)	0
Tax Legislation (expense) benefit										0	(4)	137
Net income applicable to common shareholders										(77)	(79)	23
Adjusted net income (loss)										38	8	(54)
Amortization of purchased intangibles, after-tax										(97)	(74)	(60)
Impairment of Intangible Assets (Excluding Goodwill), Net of Tax										(43)	0	0
Allstate Life
Segment Reporting Information
Net investment income										514	505	489
Realized capital gains and losses, after-tax										0	(11)	2
Tax Legislation (expense) benefit										0	(16)	338
Net income applicable to common shareholders										247	260	589
Adjusted net income (loss)										261	295	259
Valuation changes on embedded derivatives that are not hedged, after-tax										(9)	0	0
DAC and DSI amortization related to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax										(5)	(8)	(10)
Allstate Benefits
Segment Reporting Information
Net investment income										83	77	72
Realized capital gains and losses, after-tax										9	(7)	0
Tax Legislation (expense) benefit										0	0	54
Net income applicable to common shareholders										124	118	154
Adjusted net income (loss)										115	124	100
DAC and DSI amortization related to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax										0	1	0
Allstate Annuities
Segment Reporting Information
Net investment income										917	1,096	1,305
Realized capital gains and losses, after-tax										274	(131)	28
Gain (loss) on disposition of operations, after-tax										4	4	4
Tax Legislation (expense) benefit										0	69	182
Net income applicable to common shareholders										282	76	419
Adjusted net income (loss)										10	131	205
Valuation changes on embedded derivatives that are not hedged, after-tax										(6)	3	0
Corporate and Other
Segment Reporting Information
Net investment income										70	71	41
Realized capital gains and losses, after-tax										19	(30)	(4)
Pension and other postretirement remeasurement gains and losses, after-tax										(90)	(370)	141
Tax Legislation (expense) benefit										0	(15)	(238)
Goodwill impairment										0	0	(125)
Business combination expenses, after-tax										0	(7)	(14)
Net income applicable to common shareholders										(509)	(828)	(560)
Adjusted net income (loss)										$ (438)	$ (406)	$ (320)

Capital Structure - Total debt outstanding (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	May 16, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Due after one year through five years	$ 1,000		$ 1,317
Due after five years through ten years	550		550
Due after ten years	5,141		4,641
Total long-term debt principal	6,691		6,508
Debt issuance costs	(60)		(57)
Total long-term debt	6,631		6,451
Short-term debt	0		0
Total debt	$ 6,631		6,451
Redemption price as percentage of principal amount plus accrued and unpaid interest	100.00%
7.45% Senior Notes, due 2019
Debt Instrument [Line Items]
Due after one year through five years	$ 0		317
Note stated interest rate (as a percent)	7.45%	7.45%
Floating Rate Senior Notes, due 2021
Debt Instrument [Line Items]
Due after one year through five years	$ 250		250
Floating Rate Senior Notes, due 2023
Debt Instrument [Line Items]
Due after one year through five years	250		250
3.15% Senior Notes, due 2023
Debt Instrument [Line Items]
Due after one year through five years	$ 500		500
Note stated interest rate (as a percent)	3.15%
3.28% Senior Notes, due 2026
Debt Instrument [Line Items]
Due after five years through ten years	$ 550		550
Note stated interest rate (as a percent)	3.28%
6.125% Senior Notes, due 2032
Debt Instrument [Line Items]
Due after ten years	$ 159		159
Note stated interest rate (as a percent)	6.125%
5.35% Senior Notes due 2033
Debt Instrument [Line Items]
Due after ten years	$ 323		323
Note stated interest rate (as a percent)	5.35%
5.55% Senior Notes due 2035
Debt Instrument [Line Items]
Due after ten years	$ 546		546
Note stated interest rate (as a percent)	5.55%
5.95% Senior Notes, due 2036
Debt Instrument [Line Items]
Due after ten years	$ 386		386
Note stated interest rate (as a percent)	5.95%
6.900% Senior Debentures, due 2038
Debt Instrument [Line Items]
Due after ten years	$ 165		165
Note stated interest rate (as a percent)	6.90%
5.20% Senior Notes due 2042
Debt Instrument [Line Items]
Due after ten years	$ 62		62
Note stated interest rate (as a percent)	5.20%
4.50% Senior Notes, due 2043
Debt Instrument [Line Items]
Due after ten years	$ 500		500
Note stated interest rate (as a percent)	4.50%
4.20% Senior Notes, due 2046
Debt Instrument [Line Items]
Due after ten years	$ 700		700
Note stated interest rate (as a percent)	4.20%
3.850% Senior Notes, due 2049
Debt Instrument [Line Items]
Due after ten years	$ 500		0
Note stated interest rate (as a percent)	3.85%
5.100% Subordinated Debentures, due 2053
Debt Instrument [Line Items]
Due after ten years	$ 500		500
Note stated interest rate (as a percent)	5.10%
5.750% Subordinated Debentures, due 2053
Debt Instrument [Line Items]
Due after ten years	$ 800		800
Note stated interest rate (as a percent)	5.75%
6.500% Junior Subordinated Debentures, due 2067
Debt Instrument [Line Items]
Due after ten years	$ 500		500
Total long-term debt			$ 500
Note stated interest rate (as a percent)	6.50%		6.50%

Reserve for Life-Contingent Contract Benefits and Contractholder Funds

12 Months Ended

Dec. 31, 2019

Reserve for Life-Contingent Contract Benefits and Contractholder Funds

Reserve for Life-Contingent Contract Benefits and Contractholder Funds



Note 9	Reserve for Life-Contingent Contract Benefits and Contractholder Funds



Reserve for life-contingent contract benefits
	As of December 31,
($ in millions)	2019		2018
Immediate fixed annuities:
Structured settlement annuities	$	6,840	$	6,701
Other immediate fixed annuities	1,612		1,714
Traditional life insurance	2,897		2,808
Accident and health insurance	873		876
Other	78		109
Total reserve for life-contingent contract benefits	$	12,300	$	12,208



Key assumptions generally used in calculating the reserve for life-contingent contract benefits
Product	Mortality	Interest rate	Estimation method
Structured settlement annuities	U.S. population with projected calendar year improvements; mortality rates adjusted for each impaired life based on reduction in life expectancy	Interest rate assumptions range from 3.8% to 7.5%	Present value of contractually specified future benefits
Other immediate fixed annuities	1983 group annuity mortality table with internal modifications; 1983 individual annuity mortality table; Annuity 2000 mortality table with internal modifications; Annuity 2000 mortality table; 1983 individual annuity mortality table with internal modifications	Interest rate assumptions range from 0.3% to 9.0%	Present value of expected future benefits based on historical experience
Traditional life insurance	Actual company experience plus loading	Interest rate assumptions range from 2.5% to 11.3%	Net level premium reserve method using the Company’s withdrawal experience rates; includes reserves for unpaid claims
Accident and health insurance	Actual company experience plus loading	Interest rate assumptions range from 3.0% to 7.0%	Unearned premium; additional contract reserves for mortality risk and unpaid claims
Other: Variable annuity guaranteed minimum death benefits⁽¹⁾	Annuity 2012 mortality table with internal modifications	Interest rate assumptions range from 2.0% to 5.8%	Projected benefit ratio applied to cumulative assessments


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

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 AOCI. This liability was $126 million and zero as of December 31, 2019 and 2018, respectively.



Contractholder funds
	As of December 31,
($ in millions)	2019		2018
Interest-sensitive life insurance	$	8,384	$	8,229
Investment contracts:
Fixed annuities	8,845		9,681
Other investment contracts	463		461
Total contractholder funds	$	17,692	$	18,371



Key contract provisions of contractholder funds
Product	Interest rate	Withdrawal/surrender charges
Interest-sensitive life insurance	Interest rates credited range from 0.0% to 10.0% for equity-indexed life (whose returns are indexed to the S&P 500) and 1.0% to 6.0% for all other products	Either a percentage of account balance or dollar amount grading off generally over 20 years
Fixed annuities	Interest rates credited range from 0.5% to 7.5% for immediate annuities; (8.0)% to 10.0% for equity-indexed annuities (whose returns are indexed to the S&P 500); and 0.1% to 6.0% for all other products	Either a declining or a level percentage charge generally over ten years or less. Additionally, approximately 12.0% of fixed annuities are subject to market value adjustment for discretionary withdrawals
Other investment contracts: Guaranteed minimum income, accumulation and withdrawal benefits on variable ⁽¹⁾ and fixed annuities and secondary guarantees on interest-sensitive life insurance and fixed annuities	Interest rates used in establishing reserves range from 1.7% to 10.3%	Withdrawal and surrender charges are based on the terms of the related interest-sensitive life insurance or fixed annuity contract


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



Contractholder funds activity
	For the years ended December 31,
($ in millions)	2019			2018			2017
Balance, beginning of year	$	18,371		$	19,434		$	20,260
Deposits	1,091			1,109			1,130
Interest credited	636			650			687
Benefits	(791		)	(844		)	(901		)
Surrenders and partial withdrawals	(884		)	(1,135		)	(999		)
Contract charges	(825		)	(824		)	(826		)
Net transfers from separate accounts	10			6			5
Other adjustments	84			(25		)	78
Balance, end of year	$	17,692		$	18,371		$	19,434

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

Absent any contract provision wherein the Company guarantees either a minimum return or account value upon death, a specified contract anniversary date, partial withdrawal or annuitization, variable annuity and variable life insurance contractholders bear the investment risk that the separate accounts’ funds may not meet their stated investment objectives. The account balances of variable annuity contracts’ separate accounts with guarantees included $2.68 billion and $2.47 billion of equity, fixed income and balanced mutual funds and $253 million and $245 million of money market mutual funds as of December 31, 2019 and 2018, respectively.

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



($ in millions)	As of December 31,
	2019		2018
In the event of death
Separate account value	$	2,928	$	2,711
Net amount at risk ⁽¹⁾	$	373	$	605
Average attained age of contractholders	71 years		71 years
At annuitization (includes income benefit guarantees)
Separate account value	$	848	$	778
Net amount at risk ⁽²⁾	$	173	$	264
Weighted average waiting period until annuitization options available	None		None
For cumulative periodic withdrawals
Separate account value	$	190	$	190
Net amount at risk ⁽³⁾	$	13	$	16
Accumulation at specified dates
Separate account value	$	123	$	129
Net amount at risk ⁽⁴⁾	$	15	$	26
Weighted average waiting period until guarantee date	4 years		4 years


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


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


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


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

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

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

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



Summary of liabilities for guarantees
($ in millions)	Liability for guarantees related to death benefits and interest-sensitive life products			Liability for guarantees related to income benefits		Liability for guarantees related to accumulation and withdrawal benefits		Total
Balance, December 31, 2018 ⁽¹⁾	$	308		$	39	$	97	$	444
Less reinsurance recoverables	111			35		39		185
Net balance as of December 31, 2018	197			4		58		259
Incurred guarantee benefits	18			—		12		30
Paid guarantee benefits	(3		)	—		—		(3		)
Net change	15			—		12		27
Net balance as of December 31, 2019	212			4		70		286
Plus reinsurance recoverables	81			20		32		133
Balance, December 31, 2019 ⁽²⁾	$	293		$	24	$	102	$	419

Balance, December 31, 2017 ⁽³⁾	$	262		$	29	$	79	$	370
Less reinsurance recoverables	87			25		34		146
Net balance as of December 31, 2017	175			4		45		224
Incurred guarantee benefits	24			—		13		37
Paid guarantee benefits	(2		)	—		—		(2		)
Net change	22			—		13		35
Net balance as of December 31, 2018	197			4		58		259
Plus reinsurance recoverables	111			35		39		185
Balance, December 31, 2018 ⁽¹⁾	$	308		$	39	$	97	$	444


⁽¹⁾	Included in the total liability balance as of December 31, 2018 are reserves for variable annuity death benefits of $109 million, variable annuity income benefits of $36 million, variable annuity accumulation benefits of $25 million, variable annuity withdrawal benefits of $14 million and other guarantees of $260 million.


⁽²⁾	Included in the total liability balance as of December 31, 2019 are reserves for variable annuity death benefits of $78 million, variable annuity income benefits of $21 million, variable annuity accumulation benefits of $18 million, variable annuity withdrawal benefits of $14 million and other guarantees of $288 million.

⁽³⁾

Included in the total liability balance as of December 31, 2017 are reserves for variable annuity death benefits of $85 million, variable annuity income benefits of $26 million, variable annuity accumulation benefits of $22 million, variable annuity withdrawal benefits of $12 million and other guarantees of $225 million.

Investments - Other-than-temporary impairment losses by asset type (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Other-than-temporary impairment losses by asset type
Gross	$ (48)	$ (13)	$ (146)
Included in OCI	1	(1)	(4)
Other-than-temporary Impairment Loss, Debt Securities And Other, Portion Recognized in Earnings	47	14
Net	(47)	(14)	(150)
Net			(150)
Fixed income securities
Other-than-temporary impairment losses by asset type
Gross	(15)	(9)	(22)
Included in OCI	1	(1)	(4)
Net	(14)	(10)	(26)
Municipal
Other-than-temporary impairment losses by asset type
Gross	(2)	0	(1)
Included in OCI	2	0	(3)
Net	0	0	(4)
Corporate
Other-than-temporary impairment losses by asset type
Gross	(5)	(4)	(9)
Included in OCI	(2)	2	3
Net	(7)	(2)	(6)
ABS
Other-than-temporary impairment losses by asset type
Gross	(4)	(1)	(1)
Included in OCI	0	(2)	(2)
Net	(4)	(3)	(3)
MBS
Other-than-temporary impairment losses by asset type
Gross	(4)	(4)	(11)
Included in OCI	1	(1)	(2)
Net	(3)	(5)	(13)
Equity securities
Other-than-temporary impairment losses by asset type
Gross	0	0	(86)
Included in OCI	0	0	0
Other-than-temporary Impairment Loss, Debt Securities And Other, Portion Recognized in Earnings	0
Net		0
Net			(86)
Mortgage loans
Other-than-temporary impairment losses by asset type
Gross	0	0	(1)
Included in OCI	0	0	0
Other-than-temporary Impairment Loss, Debt Securities And Other, Portion Recognized in Earnings	0	0
Net			(1)
Limited partnership interests
Other-than-temporary impairment losses by asset type
Gross	(6)	(3)	(32)
Included in OCI	0	0	0
Other-than-temporary Impairment Loss, Debt Securities And Other, Portion Recognized in Earnings	6	3
Net			(32)
Other
Other-than-temporary impairment losses by asset type
Gross	(27)	(1)	(5)
Included in OCI	0	0	0
Other-than-temporary Impairment Loss, Debt Securities And Other, Portion Recognized in Earnings	$ 27	$ 1
Net			$ (5)

Benefit Plans - Future amortization amounts (Details) $ in Millions	Dec. 31, 2019 USD ($)
Pension benefits
Estimates of the net actuarial loss (gain) and prior service credit expected to be recognized as a component of net periodic benefit cost during 2015
Prior service credit	$ (56)
Postretirement benefits
Estimates of the net actuarial loss (gain) and prior service credit expected to be recognized as a component of net periodic benefit cost during 2015
Prior service credit	$ 3

Reserve for Life-Contingent Contract Benefits and Contractholder Funds - Contractholder funds activity (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Contractholder funds activity
Balance, beginning of year	$ 18,371	$ 19,434	$ 20,260
Deposits	1,091	1,109	1,130
Interest credited	636	650	687
Benefits	(791)	(844)	(901)
Surrenders and partial withdrawals	(884)	(1,135)	(999)
Contract charges	(825)	(824)	(826)
Net transfers from separate accounts	10	6	5
Other adjustments	84	(25)	78
Balance, end of year	$ 17,692	$ 18,371	$ 19,434

Reserve for Property-Liability Insurance Claims and Claims Expense - Reconciliation of total claims and claims expense incurred and paid by coverage (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Increase (decrease) in claims and claims expense
Incurred	$ 23,976	$ 22,778	$ 21,847
Paid	(23,444)	(22,364)	(21,076)
Claims incurred and paid from before 2015
Increase (decrease) in claims and claims expense
Incurred	(97)
Paid	(444)
Auto insurance - liability coverage
Increase (decrease) in claims and claims expense
Incurred	9,142
Paid	(8,419)
Auto insurance - physical damage coverage
Increase (decrease) in claims and claims expense
Incurred	5,576
Paid	(5,570)
Homeowners
Increase (decrease) in claims and claims expense
Incurred	4,625
Paid	(4,616)
Total auto and homeowners insurance
Increase (decrease) in claims and claims expense
Incurred	19,343
Paid	(18,605)
Other personal lines
Increase (decrease) in claims and claims expense
Incurred	1,024
Paid	(1,059)
Commercial lines
Increase (decrease) in claims and claims expense
Incurred	648
Paid	(404)
Service Businesses
Increase (decrease) in claims and claims expense
Incurred	297
Paid	(311)
Unallocated loss adjustment expenses (“ULAE”)
Increase (decrease) in claims and claims expense
Incurred	2,687
Paid	(2,585)
Other
Increase (decrease) in claims and claims expense
Incurred	(17)
Paid	85
Discontinued Lines and Coverages
Increase (decrease) in claims and claims expense
Incurred	91
Paid	(121)
Catastrophes
Increase (decrease) in claims and claims expense
Incurred	$ 2,560	$ 2,860	$ 3,230

Reinsurance and Indemnification - Florida Hurricane Catastrophe Fund (Details)	12 Months Ended
	May 31, 2020 USD ($) hurricane	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Reinsurance Retention Policy [Line Items]
Ceded premium earned		$ 1,407,000,000	$ 1,306,000,000	$ 1,274,000,000
Florida Hurricane Catastrophe Fund
Reinsurance Retention Policy [Line Items]
Emergency assessment maximum percentage of premiums first year		6.00%
Emergency assessment maximum percentage of premiums subsequent years		10.00%
Emergency assessment, bonds issued				2,000,000,000.00
Emergency assessment maximum percentage of premiums subsequent years, FL OIR		0.00%
Florida Hurricane Catastrophe Fund
Reinsurance Retention Policy [Line Items]
Ceded premium earned		$ 9,000,000	10,000,000	11,000,000
Ceded losses incurred		33,000,000	143,000,000	$ 19,000,000
Reinsurance and indemnification recoverables, net		$ 52,000,000	$ 104,000,000
Forecast \| Florida Hurricane Catastrophe Fund
Reinsurance Retention Policy [Line Items]
Percent of losses in excess of retention level to be reimbursed	90.00%
Retention level for losses related to 2 largest hurricanes	$ 52,000,000
Number of storms \| hurricane	2
Retention level for losses related to other hurricanes	$ 17,000,000
Maximum Retention level for losses related to hurricanes	$ 145,000,000

Reinsurance and Indemnification - Kentucky Earthquake Excess Catastrophe Reinsurance Contract (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) contract limit
Reinsurance Retention Policy [Line Items]
Limit of aggregate losses under aggregate excess agreement	$ 3,400
Kentucky Agreement
Reinsurance Retention Policy [Line Items]
Term of catastrophe reinsurance agreement contract	3 years
Number of limits \| limit	3
Limit of aggregate losses under aggregate excess agreement	$ 28
Retention amount for catastrophe reinsurance agreement contracts	$ 2
Number of limits available per contract year \| limit	2
Contracts number \| contract	1
Retention percentage of reinsurance limit	95.00%

Company Restructuring (Tables)

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Schedule of changes in the restructuring liability



Restructuring activity during the period
($ in millions)	Employee costs			Exit costs			Total liability
Restructuring liability as of December 31, 2018	$	29		$	15		$	44
Expense incurred	43			7			50
Adjustments to liability	(9		)	—			(9		)
Payments and non-cash pension settlements	(49		)	(14		)	(63		)
Restructuring liability as of December 31, 2019	$	14		$	8		$	22

Schedule V - Valuation Allowances and Qualifying Accounts (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Allowance for reinsurance recoverables
Valuation allowances and qualifying accounts
Balance as of beginning of period	$ 65	$ 70	$ 84
Additions, Charged to costs and expenses	(2)	(5)	(10)
Additions, Other additions	0	0	0
Deductions	0	0	4
Balance as of end of period	63	65	70
Allowance for premium installment receivable
Valuation allowances and qualifying accounts
Balance as of beginning of period	77	77	84
Additions, Charged to costs and expenses	137	118	109
Additions, Other additions	0	0	0
Deductions	124	118	116
Balance as of end of period	90	77	77
Allowance for deferred tax assets
Valuation allowances and qualifying accounts
Balance as of beginning of period	0	0	0
Additions, Charged to costs and expenses	0	0	0
Additions, Other additions	0	0	0
Deductions	0	0	0
Balance as of end of period	0	0	0
Allowance for estimated losses on mortgage loans
Valuation allowances and qualifying accounts
Balance as of beginning of period	3	3	3
Additions, Charged to costs and expenses	0	0	1
Additions, Other additions	0	0	0
Deductions	0	0	1
Balance as of end of period	3	3	3
Allowance for estimated losses on agent loans
Valuation allowances and qualifying accounts
Balance as of beginning of period	2	2
Additions, Charged to costs and expenses	1	0
Additions, Other additions	0	0
Deductions	0	0
Balance as of end of period	$ 3	$ 2	$ 2

Investments - Change in unrealized net capital gains and losses (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2018
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	$ 2,711	$ (1,434)	$ 857
Amounts recognized for:
Insurance reserves	(126)	315	(315)
DAC and DSI	(191)	163	(50)
Amounts recognized	(317)	478	(365)
Deferred income taxes	(505)	202	117
Increase (decrease) in unrealized net capital gains and losses, after-tax	1,889	(754)	609
Equity securities				$ 1,160
EMA limited partnerships
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	(4)	(1)	5
Fixed income securities
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	2,715	(1,431)	204
Equity securities
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	0	0	651
Derivatives
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	$ 0	$ (2)	$ (3)

Schedule II - Condensed Financial Information of Registrant - Cash Flows (Details) - USD ($) $ in Millions		12 Months Ended
	Oct. 15, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities
Net income		$ 4,847	$ 2,160	$ 3,554
Adjustments to reconcile net income to net cash provided by operating activities:
Realized capital gains and losses		(1,885)	877	(445)
Changes in:
Net cash provided by operating activities		5,129	5,175	4,314
Cash flows from investing activities
Change in short-term investments, net		(767)	(505)	2,610
Net cash used in investing activities		(2,807)	(1,719)	(1,210)
Cash flows from financing activities
Proceeds from issuance of long-term debt		491	498	0
Redemption of preferred stock	$ (1,130)	(1,132)	(385)	0
Redemption and repayment of long-term debt		(317)	(400)	0
Proceeds from issuance of preferred stock		1,414	557	0
Dividends paid on common stock		(653)	(614)	(525)
Dividends paid on preferred stock		(134)	(134)	(116)
Treasury stock purchases		(1,735)	(2,303)	(1,495)
Shares reissued under equity incentive plans, net		120	73	135
Other		129	91	(57)
Net cash used in financing activities		(2,483)	(3,574)	(2,923)
Cash at beginning of year		499
Cash at end of year		338	499
Allstate Corporation
Cash flows from operating activities
Net income		4,847	2,160	3,554
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net income of subsidiaries		(5,072)	(2,731)	(3,556)
Dividends received from subsidiaries		2,434	2,059	1,671
Realized capital gains and losses		(9)	10	2
Pension and other postretirement remeasurement gains and losses		103	454	(219)
Changes in:
Pension and other postretirement benefits		(122)	(116)	(224)
Income taxes		13	(28)	232
Operating assets and liabilities		111	160	56
Net cash provided by operating activities		2,305	1,968	1,516
Cash flows from investing activities
Proceeds from sales of investments		1,094	1,370	880
Proceeds from sales of investments to subsidiaries		0	390	0
Investment purchases		(892)	(1,037)	(748)
Investment collections		65	108	13
Capital contribution or return of capital from subsidiaries		43	(975)	42
Change in short-term investments, net		(417)	(115)	48
Net cash used in investing activities		(107)	(259)	235
Cash flows from financing activities
Proceeds from borrowings from subsidiaries		1,000	1,250	300
Repayment of notes due to subsidiaries		(1,250)	(250)	(50)
Proceeds from issuance of long-term debt		491	498	0
Redemption of preferred stock		(1,132)	(385)	0
Redemption and repayment of long-term debt		(317)	(400)	0
Proceeds from issuance of preferred stock		1,414	557	0
Dividends paid on common stock		(653)	(614)	(525)
Dividends paid on preferred stock		(134)	(134)	(116)
Treasury stock purchases		(1,735)	(2,303)	(1,495)
Shares reissued under equity incentive plans, net		120	73	135
Other		0	(1)	(2)
Net cash used in financing activities		(2,196)	(1,709)	(1,753)
Net increase (decrease) in cash		2	0	(2)
Cash at beginning of year		0	0	2
Cash at end of year		$ 2	$ 0	$ 0

Reinsurance and Indemnification - 2017-1 Excess Catastrophe Reinsurance Contract (Details) $ in Millions	9 Months Ended	12 Months Ended
	Dec. 31, 2017 USD ($)	Dec. 31, 2019 USD ($) state
Ceded Credit Risk [Line Items]
Limit of aggregate losses under aggregate excess agreement		$ 3,400
2017-1 Excess Catastrophe Reinsurance Contract
Ceded Credit Risk [Line Items]
Number of states covered by reinsurance agreement \| state		49
Limit of aggregate losses under aggregate excess agreement	$ 375	$ 3,400
Catastrophe reinsurance aggregate loss limit		$ 3,690
Co-participation percentage		5.00%
Gap Fill Excess Catastrophe Reinsurance Contract
Ceded Credit Risk [Line Items]
Limit of aggregate losses under aggregate excess agreement		$ 219
Retention percentage of reinsurance limit		100.00%
Catastrophe reinsurance aggregate loss limit		$ 4,130
Gap Fill Excess Catastrophe Reinsurance Contract, Layers
Ceded Credit Risk [Line Items]
Limit of aggregate losses under aggregate excess agreement		$ 1,610
Co-participation percentage		5.00%
Minimum \| 2017-1 Excess Catastrophe Reinsurance Contract
Ceded Credit Risk [Line Items]
Retention amount for catastrophe reinsurance agreement contracts		$ 2,750
Minimum \| Gap Fill Excess Catastrophe Reinsurance Contract
Ceded Credit Risk [Line Items]
Retention amount for catastrophe reinsurance agreement contracts		2,750
Minimum \| Gap Fill Excess Catastrophe Reinsurance Contract, Layers
Ceded Credit Risk [Line Items]
Retention amount for catastrophe reinsurance agreement contracts		$ 2,750

Capital Structure - Narrative (Details)						12 Months Ended
Capital Structure - Narrative (Details)	Jan. 15, 2020 USD ($) $ / shares shares	Nov. 08, 2019 USD ($) $ / shares shares	Oct. 15, 2019 USD ($) $ / shares shares	Aug. 08, 2019 USD ($) $ / shares shares	May 16, 2019 USD ($)	Dec. 31, 2019 USD ($) director $ / shares shares	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($)	Jun. 10, 2019 USD ($)
Class of Stock [Line Items]
Repayments of long-term debt						$ 317,000,000	$ 400,000,000	$ 0
Long-term debt						6,631,000,000	6,451,000,000
Unsecured revolving credit facility						1,000,000,000.00
Commercial Paper maximum borrowing capacity						1,000,000,000.00
Additional borrowing capacity under credit facility increase provision						$ 500,000,000
Maximum debt to capital ratio allowed under credit facility covenant (as a percent)						37.50%
Credit facility, amount outstanding						$ 0	0
Interest paid on debt						312,000,000	330,000,000	332,000,000
Other liabilities and accrued expenses						$ 389,000,000	$ 260,000,000
Common stock
Common stock, shares issued (in shares) \| shares						900,000,000	900,000,000
Common stock, shares outstanding (in shares) \| shares						319,000,000	332,000,000
Treasury stock, shares (in shares) \| shares						581,000,000	568,000,000
Reacquired shares (in shares) \| shares						16,000,000
Average cost of reacquired shares (in dollars per share) \| $ / shares						$ 110.37
Reissued net shares under equity incentive plans (in shares) \| shares						3,000,000
Preferred stock
Preferred stock, par value (in dollars per share) \| $ / shares						$ 1	$ 1
Aggregate liquidation preference						$ 2,313,000,000	$ 1,995,000,000
Redemption of preferred stock			$ 1,130,000,000			1,132,000,000	385,000,000	$ 0
Preferred Stock Redemption Premium						$ 37,000,000
Period of issuance of common stock prior to dividend declaration date during which dividend declaration is prohibited						90 days
Series D
Preferred stock
Stock Redeemed (in shares) \| shares			5,400
Preferred stock, par value (in dollars per share) \| $ / shares			$ 1.00
Preferred stock, shares liquidation preference (in dollars per share) \| $ / shares			$ 25,000
Series E
Preferred stock
Stock Redeemed (in shares) \| shares			29,900
Preferred stock, par value (in dollars per share) \| $ / shares			$ 1.00
Preferred stock, shares liquidation preference (in dollars per share) \| $ / shares			$ 25,000
Series F
Preferred stock
Stock Redeemed (in shares) \| shares			10,000
Preferred stock, par value (in dollars per share) \| $ / shares			$ 1.00
Preferred stock, shares liquidation preference (in dollars per share) \| $ / shares			$ 25,000
Series I
Preferred stock
Preferred stock, par value (in dollars per share) \| $ / shares		$ 1.00
Preferred stock, shares liquidation preference (in dollars per share) \| $ / shares		$ 25,000
Aggregate liquidation preference		$ 300,000,000				$ 300,000,000.0	0
Stock issued during period (in shares) \| shares		12,000
Dividend rate		4.75%				4.75%
Noncumulative Perpetual Preferred Stock
Class of Stock [Line Items]
Period after occurrence of certain tax and rating agency events in which redemption of debt in whole permissible						90 days
Preferred stock
Preferred stock, par value (in dollars per share) \| $ / shares						$ 1.00
Preferred stock, shares liquidation preference (in dollars per share) \| $ / shares						25,000
Preferred stock, redemption price (in dollars per share) \| $ / shares						$ 25,000
Series H
Preferred stock
Preferred stock, par value (in dollars per share) \| $ / shares				$ 1.00
Preferred stock, shares liquidation preference (in dollars per share) \| $ / shares				$ 25,000
Aggregate liquidation preference				$ 1,150,000,000		$ 1,150,000,000.0	0
Stock issued during period (in shares) \| shares				46,000
Dividend rate				5.10%		5.10%
Series E
Preferred stock
Aggregate liquidation preference						$ 0	747,500,000
Dividend rate						6.625%
Series F
Preferred stock
Aggregate liquidation preference						$ 0	$ 250,000,000.0
Dividend rate						6.25%
Minimum
Preferred stock
Collective risk-based capital ratios of subsidiaries as a percentage of net written premiums of insurance business						80.00%
Percentage of decline in consolidated shareholders' equity from benchmark quarter						20.00%
Minimum \| Noncumulative Perpetual Preferred Stock
Preferred stock
Preferred stock, redemption price (in dollars per share) \| $ / shares						$ 25,000
Maximum
Preferred stock
Risk-based capital ratios as a percentage of action level risk-based capital						175.00%
Percentage by which consolidated shareholders' equity should increase or decrease to avoid restriction on dividends						20.00%
Maximum \| Noncumulative Perpetual Preferred Stock
Preferred stock
Additional members of the board of directors \| director						2
Preferred stock, redemption price (in dollars per share) \| $ / shares						$ 25,500
Floating Rate Senior Notes, due 2021
Class of Stock [Line Items]
Debt instrument, face amount									$ 500,000,000
Senior Notes, Due 2049 [Member]
Class of Stock [Line Items]
Note stated interest rate (as a percent)									3.85%
3.28% Senior Notes, due 2026
Class of Stock [Line Items]
Note stated interest rate (as a percent)						3.28%
4.20% Senior Notes, due 2046
Class of Stock [Line Items]
Note stated interest rate (as a percent)						4.20%
5.100% Subordinated Debentures, due 2053
Class of Stock [Line Items]
Note stated interest rate (as a percent)						5.10%
5.750% Subordinated Debentures, due 2053
Class of Stock [Line Items]
Note stated interest rate (as a percent)						5.75%
Subordinated Debentures
Class of Stock [Line Items]
Minimum principal outstanding amount for redemption of debt in whole or in part						$ 25,000,000
Period after occurrence of certain tax and rating agency events in which redemption of debt in whole permissible						90 days
Maximum period for deferment of interest payment						5 years
6.500% Junior Subordinated Debentures, due 2067
Class of Stock [Line Items]
Note stated interest rate (as a percent)						6.50%	6.50%
Long-term debt							$ 500,000,000
6.125% Junior Subordinated Debentures, due 2067
Class of Stock [Line Items]
Note stated interest rate (as a percent)						6.125%
6.75% Senior Debentures, due 2018
Class of Stock [Line Items]
Note stated interest rate (as a percent)
The Debentures
Class of Stock [Line Items]
Maximum period for deferment of interest payment						10 years
Reserved common stock authorized and unissued for debentures obligations (in shares) \| shares						75,000,000
7.45% Senior Notes, due 2019
Class of Stock [Line Items]
Note stated interest rate (as a percent)					7.45%	7.45%
Repayments of long-term debt					$ 317,000,000
Threshold percentage of repurchase or redemption of outstanding principal debentures for non applicability of promises and covenants contained in the new RCC						10.00%
Period within which threshold percentage of outstanding principal of debentures is to be purchased for non applicability of promises and covenants contained in the new RCC						1 year
Specified period within which percentage of outstanding principal of debentures is to be purchased for non applicability of promises and covenants contained in the new RCC						10 years
7.45% Senior Notes, due 2019 \| Maximum
Class of Stock [Line Items]
Percentage of repurchase or redemption of outstanding principal debentures within specified period for non applicability of promises and covenants contained in the new RCC						25.00%
Commercial Paper
Class of Stock [Line Items]
Amount of commercial paper outstanding						$ 0	$ 0
London Interbank Offered Rate (LIBOR) \| 5.100% Subordinated Debentures, due 2053
Class of Stock [Line Items]
Interest rate spread over LIBOR (as a percent)						3.165%
London Interbank Offered Rate (LIBOR) \| 5.750% Subordinated Debentures, due 2053
Class of Stock [Line Items]
Interest rate spread over LIBOR (as a percent)						2.938%
London Interbank Offered Rate (LIBOR) \| 6.500% Junior Subordinated Debentures, due 2067
Class of Stock [Line Items]
Interest rate spread over LIBOR (as a percent)						2.12%
Subsequent Event
Preferred stock
Redemption of preferred stock	$ 288,000,000
Preferred Stock Redemption Premium	$ 10,000,000
Subsequent Event \| Series A Preferred Stock
Preferred stock
Stock Redeemed (in shares) \| shares	11,500
Preferred stock, par value (in dollars per share) \| $ / shares	$ 1.00
Preferred stock, shares liquidation preference (in dollars per share) \| $ / shares	$ 25,000

Fair Value of Assets and Liabilities - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Fair value of assets and liabilities measured on recurring and non-recurring basis
Fixed income securities	$ 59,044	$ 57,170
Commitments to invest in limited partnership interests	2,837	3,028
Limited partnership interests
Fair value of assets and liabilities measured on recurring and non-recurring basis
Commitments to invest in limited partnership interests	$ 492
Limited partnership interests \| Minimum
Fair value of assets and liabilities measured on recurring and non-recurring basis
Investment assets, useful life	10 years
Limited partnership interests \| Maximum
Fair value of assets and liabilities measured on recurring and non-recurring basis
Investment assets, useful life	12 years
Fixed Income Securities Valued Based on Nonbinding Broker Quotes
Fair value of assets and liabilities measured on recurring and non-recurring basis
Total assets at fair value	$ 50	105
Municipal Not Rated by Third Party Credit Rating Agencies
Fair value of assets and liabilities measured on recurring and non-recurring basis
Total assets at fair value	36	44
Significant unobservable inputs (Level 3)
Fair value of assets and liabilities measured on recurring and non-recurring basis
Total assets at fair value	738
Significant unobservable inputs (Level 3) \| Recurring
Fair value of assets and liabilities measured on recurring and non-recurring basis
Embedded Derivative, Fair Value of Embedded Derivative Liability	462	224
Fixed income securities	$ 342	325
Total assets at fair value		$ 697

Reporting Segments

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Reporting Segments



Note 4	Reportable Segments

The Company’s chief operating decision maker reviews financial performance and makes decisions about the allocation of resources for the seven reportable segments. These segments are described below and align with the Company’s key product and service offerings.

Allstate Protection principally offers private passenger auto and homeowners insurance in the United States and Canada, with earned premiums accounting for 78.0% of Allstate’s 2019 consolidated revenues. Allstate Protection primarily operates in the U.S. (all 50 states and the District of Columbia (“D.C.”)) and Canada. For 2019, the top U.S. geographic locations for premiums earned by the Allstate Protection segment were Texas, California, New York and Florida. No other jurisdiction accounted for more than 5% of premium earned for Allstate Protection. Revenues from external customers generated outside the United States were $1.37 billion, $1.20 billion and $1.13 billion in 2019, 2018 and 2017, respectively.

Discontinued Lines and Coverages includes property and casualty insurance coverage that primarily relates to policies written during the 1960s through the mid-1980s. Our exposure to asbestos, environmental and other discontinued lines claims arises principally from direct excess commercial insurance, assumed reinsurance coverage, direct primary commercial insurance and other businesses in run-off.

Service Businesses comprise Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside Services, Arity and Allstate Identity Protection. Service Businesses offer consumer product protection plans, finance and insurance products (including vehicle service contracts, guaranteed asset protection waivers, road hazard tire and wheel and paintless dent repair protection), roadside assistance, device and mobile data collection services and analytic solutions using automotive telematics information and identity protection. The Service Businesses primarily operate in the U.S., with certain businesses offering services in Europe, Canada, and Puerto Rico. Revenues from

external customers generated outside the United States relate to consumer product protection plans sold primarily in the European Union and were $95 million, $61 million and $35 million in 2019, 2018 and 2017, respectively.

Allstate Life offers traditional, interest-sensitive and variable life insurance products. Allstate Life primarily operates in the U.S. (all 50 states and D.C.). For 2019, the top geographic locations for statutory direct life insurance premiums were New York, California, Texas, Florida and Illinois. No other jurisdiction accounted for more than 5% of statutory direct life insurance premiums.

Allstate Benefits offers voluntary benefits products, including life, accident, critical illness, short-term disability and other health products. Allstate Benefits primarily operates in the U.S. (all 50 states and D.C.) and Canada. For 2019, the top geographic locations for statutory direct accident and health insurance premiums were Florida, Texas, North Carolina, New York and California. No other jurisdiction accounted for more than 5% of statutory direct accident and health insurance premiums. Revenues from external customers generated outside the United States relate to voluntary accident and health insurance sold in Canada and were not material.

Allstate Annuities consists primarily of deferred fixed annuities and immediate annuities (including standard and sub-standard structured settlements). This segment is in run-off.

Corporate and Other comprises holding company activities and certain non-insurance operations, including expenses associated with strategic initiatives.

Allstate Protection and Discontinued Lines and Coverages segments comprise Property-Liability. The Company does not allocate investment income, realized capital gains and losses, or assets to the Allstate Protection and Discontinued Lines and Coverages segments. Management reviews assets at the Property-Liability, Service Businesses, Allstate Life,

Allstate Benefits, Allstate Annuities, and Corporate and Other levels for decision-making purposes.

The accounting policies of the reportable segments are the same as those described in Note 2. The effects of intersegment transactions are eliminated in the consolidated results. For segment results, services provided by Service Businesses to Allstate Protection are not eliminated as management considers those transactions in assessing the results of the respective segments.

Measuring segment profit or loss

The measure of segment profit or loss used in evaluating performance is underwriting income for the Allstate Protection and Discontinued Lines and Coverages segments and adjusted net income for the Service Businesses, Allstate Life, Allstate Benefits, Allstate Annuities, and Corporate and Other segments. A reconciliation of these measures to net income applicable to common shareholders is provided below.

Underwriting income is calculated as premiums earned and other revenue, less claims and claims expenses (“losses”), amortization of DAC, operating costs and expenses, restructuring and related charges and amortization or impairment of purchased intangibles as determined using GAAP.

Adjusted net income is net income applicable to common shareholders, excluding:

• Realized capital gains and losses, after-tax, except for periodic settlements and accruals on non-hedge derivative instruments, which are reported with realized capital gains and losses but included in adjusted net income

• Pension and other postretirement remeasurement gains and losses, after-tax

• Valuation changes on embedded derivatives not hedged, after-tax

• Amortization of DAC and DSI, to the extent they resulted from the recognition of certain realized capital gains and losses or valuation changes on embedded derivatives not hedged, after-tax

• Business combination expenses and the amortization or impairment of purchased intangibles, after-tax

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

• Adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years



Reportable segments revenue information
	For the years ended December 31,
($ in millions)	2019			2018			2017
Property-Liability
Insurance premiums
Auto	$	24,188		$	22,970		$	21,878
Homeowners	7,912			7,517			7,310
Other personal lines	1,861			1,808			1,750
Commercial lines	882			655			495
Allstate Protection	34,843			32,950			31,433
Discontinued Lines and Coverages	—			—			—
Total Property-Liability insurance premiums	34,843			32,950			31,433
Other revenue	741			738			703
Net investment income	1,533			1,464			1,478
Realized capital gains and losses	1,470			(639		)	401
Total Property-Liability	38,587			34,513			34,015

Service Businesses
Consumer product protection plans	633			503			295
Roadside assistance	238			263			268
Finance and insurance products	362			332			304
Intersegment premiums and service fees ⁽¹⁾	154			122			110
Other revenue	188			82			66
Net investment income	42			27			16
Realized capital gains and losses	32			(11		)	—
Total Service Businesses	1,649			1,318			1,059

Allstate Life
Traditional life insurance premiums	630			600			568
Accident and health insurance premiums	2			2			2
Interest-sensitive life insurance contract charges	711			713			710
Other revenue	125			119			114
Net investment income	514			505			489
Realized capital gains and losses	1			(14		)	5
Total Allstate Life	1,983			1,925			1,888

Allstate Benefits
Traditional life insurance premiums	43			44			42
Accident and health insurance premiums	988			980			928
Interest-sensitive life insurance contract charges	114			111			114
Net investment income	83			77			72
Realized capital gains and losses	12			(9		)	1
Total Allstate Benefits	1,240			1,203			1,157

Allstate Annuities
Fixed annuities contract charges	13			15			14
Net investment income	917			1,096			1,305
Realized capital gains and losses	346			(166		)	44
Total Allstate Annuities	1,276			945			1,363

Corporate and Other
Net investment income	70			71			41
Realized capital gains and losses	24			(38		)	(6		)
Total Corporate and Other	94			33			35
Intersegment eliminations ⁽¹⁾	(154		)	(122		)	(110		)
Consolidated revenues	$	44,675		$	39,815		$	39,407

⁽¹⁾ Intersegment insurance premiums and service fees are primarily related to Arity and Allstate Roadside Services and are eliminated in the consolidated financial statements.



Reportable segments financial performance
	For the years ended December 31,
($ in millions)	2019			2018			2017
Property-Liability
Allstate Protection	$	2,912		$	2,343		$	2,304
Discontinued Lines and Coverages	(108		)	(90		)	(99		)
Total underwriting income	2,804			2,253			2,205
Net investment income	1,533			1,464			1,478
Income tax expense on operations	(887		)	(747		)	(1,187		)
Realized capital gains and losses, after-tax	1,161			(500		)	272
Gain on disposition of operations, after-tax	—			—			9
Tax Legislation (expense) benefit	—			(5		)	36
Property-Liability net income applicable to common shareholders	4,611			2,465			2,813

Service Businesses
Adjusted net income (loss)	38			8			(54		)
Realized capital gains and losses, after-tax	25			(9		)	—
Amortization of purchased intangibles, after-tax	(97		)	(74		)	(60		)
Impairment of purchased intangibles, after-tax	(43		)	—			—
Tax Legislation (expense) benefit	—			(4		)	137
Service Businesses net (loss) income applicable to common shareholders	(77		)	(79		)	23

Allstate Life
Adjusted net income	261			295			259
Realized capital gains and losses, after-tax	—			(11		)	2
Valuation changes on embedded derivatives not hedged, after-tax	(9		)	—			—
DAC and DSI amortization related to realized capital gains and losses and valuation changes on embedded derivatives not hedged, after-tax	(5		)	(8		)	(10		)
Tax Legislation (expense) benefit	—			(16		)	338
Allstate Life net income applicable to common shareholders	247			260			589

Allstate Benefits
Adjusted net income	115			124			100
Realized capital gains and losses, after-tax	9			(7		)	—
DAC and DSI amortization related to realized capital gains and losses, after-tax	—			1			—
Tax Legislation benefit	—			—			54
Allstate Benefits net income applicable to common shareholders	124			118			154

Allstate Annuities
Adjusted net income	10			131			205
Realized capital gains and losses, after-tax	274			(131		)	28
Valuation changes on embedded derivatives not hedged, after-tax	(6		)	3			—
Gain on disposition of operations, after-tax	4			4			4
Tax Legislation benefit	—			69			182
Allstate Annuities net income applicable to common shareholders	282			76			419

Corporate and Other
Adjusted net loss	(438		)	(406		)	(320		)
Realized capital gains and losses, after-tax	19			(30		)	(4		)
Pension and other postretirement remeasurement gains and losses, after-tax	(90		)	(370		)	141
Goodwill impairment	—			—			(125		)
Business combination expenses, after-tax	—			(7		)	(14		)
Tax Legislation expense	—			(15		)	(238		)
Consolidated and Other net loss applicable to common shareholders	(509		)	(828		)	(560		)

Consolidated net income applicable to common shareholders	$	4,678		$	2,012		$	3,438



Additional significant financial performance data
	For the years ended December 31,
($ in millions)	2019			2018			2017
Amortization of DAC
Property-Liability	$	4,649		$	4,475		$	4,205
Service Businesses	543			463			296
Allstate Life	173			132			134
Allstate Benefits	161			145			142
Allstate Annuities	7			7			7
Consolidated	$	5,533		$	5,222		$	4,784

Income tax expense (benefit)
Property-Liability	$	1,196		$	613		$	1,285
Service Businesses	(18		)	(19		)	(194		)
Allstate Life	53			75			(226		)
Allstate Benefits	35			32			1
Allstate Annuities	73			(66		)	(58		)
Corporate and Other	(97		)	(167		)	187
Consolidated	$	1,242		$	468		$	995

Interest expense is primarily incurred in the Corporate and Other segment. Capital expenditures for long-lived assets are generally made in Property-Liability as the Company does not allocate assets to the Allstate Protection and Discontinued Lines and Coverages segments. A portion of these long-lived assets are used by entities included in the Service Businesses, Allstate Life, Allstate Benefits, Allstate Annuities and Corporate and Other segments and, accordingly, are charged to expenses in proportion to their use.



Reportable segment total assets and investments ⁽¹⁾
	As of December 31,
($ in millions)	2019		2018
Assets
Property-Liability	$	67,243	$	61,947
Service Businesses	5,746		5,473
Allstate Life	14,771		13,613
Allstate Benefits	2,915		2,822
Allstate Annuities	26,914		26,798
Corporate and Other	2,361		1,596
Consolidated	$	119,950	$	112,249

Investments
Property-Liability	$	48,414	$	43,634
Service Businesses	1,544		1,203
Allstate Life	11,914		10,809
Allstate Benefits	1,941		1,809
Allstate Annuities	22,221		22,336
Corporate and Other	2,328		1,469
Consolidated	$	88,362	$	81,260

⁽¹⁾

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

Investments - Continuous unrealized loss positions (Details) $ in Millions	Dec. 31, 2019 USD ($) contract	Dec. 31, 2018 USD ($) contract
U.S. government and agencies
Fixed income securities
Number of issues \| contract	31	11
Fair value	$ 1,713	$ 55
Unrealized losses	$ (26)	$ 0
Fixed income securities
Number of issues \| contract	10	38
Fair value	$ 26	$ 364
Unrealized losses	0	(6)
Total unrealized losses	$ (26)	$ (6)
Municipal
Fixed income securities
Number of issues \| contract	307	943
Fair value	$ 576	$ 1,633
Unrealized losses	$ (9)	$ (10)
Fixed income securities
Number of issues \| contract	1	1,147
Fair value	$ 14	$ 1,554
Unrealized losses	(2)	(33)
Total unrealized losses	$ (11)	$ (43)
Corporate
Fixed income securities
Number of issues \| contract	186	1,736
Fair value	$ 1,392	$ 19,243
Unrealized losses	$ (20)	$ (543)
Fixed income securities
Number of issues \| contract	65	645
Fair value	$ 485	$ 8,374
Unrealized losses	(27)	(347)
Total unrealized losses	$ (47)	$ (890)
Foreign government
Fixed income securities
Number of issues \| contract	55	7
Fair value	$ 412	$ 20
Unrealized losses	$ (4)	$ (1)
Fixed income securities
Number of issues \| contract	6	27
Fair value	$ 102	$ 412
Unrealized losses	(1)	(4)
Total unrealized losses	$ (5)	$ (5)
ABS
Fixed income securities
Number of issues \| contract	36	64
Fair value	$ 193	$ 454
Unrealized losses	$ (2)	$ (5)
Fixed income securities
Number of issues \| contract	23	28
Fair value	$ 160	$ 161
Unrealized losses	(4)	(5)
Total unrealized losses	$ (6)	$ (10)
MBS
Fixed income securities
Number of issues \| contract	27	169
Fair value	$ 15	$ 37
Unrealized losses	$ 0	$ 0
Fixed income securities
Number of issues \| contract	123	197
Fair value	$ 14	$ 52
Unrealized losses	(1)	(3)
Total unrealized losses	$ (1)	$ (3)
Fixed income securities
Fixed income securities
Number of issues \| contract	642	2,930
Fair value	$ 4,301	$ 21,442
Unrealized losses	$ (61)	$ (559)
Fixed income securities
Number of issues \| contract	228	2,082
Fair value	$ 801	$ 10,917
Unrealized losses	(35)	(398)
Total unrealized losses	$ (96)	$ (957)
Investment grade fixed income securities
Fixed income securities
Number of issues \| contract	581	2,348
Fair value	$ 3,878	$ 17,485
Unrealized losses	$ (41)	$ (331)
Fixed income securities
Number of issues \| contract	185	2,021
Fair value	$ 594	$ 10,626
Unrealized losses	(20)	(360)
Total unrealized losses	$ (61)	$ (691)
Below investment grade fixed income securities
Fixed income securities
Number of issues \| contract	61	582
Fair value	$ 423	$ 3,957
Unrealized losses	$ (20)	$ (228)
Fixed income securities
Number of issues \| contract	43	61
Fair value	$ 207	$ 291
Unrealized losses	(15)	(38)
Total unrealized losses	$ (35)	$ (266)

Investments - Realized capital gains and losses by transaction type (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Investments [Abstract]
Impairment write-downs	$ (47)	$ (14)	$ (102)
Change in intent write-downs	0	0	(48)
Net OTTI losses recognized in earnings	(47)	(14)	(150)
Sales	575	(215)	641
Valuation of equity investments	1,372	(691)	0
Valuation and settlements of derivative instruments	(15)	43	(46)
Total realized capital gains and losses	1,885	(877)	445
Fixed income and equity securities
Schedule of Available for Sale Securities
Gross gains on sales of fixed income securities	607	120	737
Gross loss on sales of fixed income securities	$ 132	$ 347	$ 276

Capital Structure

12 Months Ended

Dec. 31, 2019

Capital Structure

Capital Structure



Note 12	Capital Structure



Total debt outstanding
	As of December 31,
($ in millions)	2019			2018
7.450% Senior Notes, due 2019 ⁽¹⁾	$	—		$	317
Floating Rate Senior Notes, due 2021⁽¹⁾	250			250
Floating Rate Senior Notes, due 2023 ⁽¹⁾	250			250
3.150% Senior Notes, due 2023 ⁽¹⁾	500			500
Due after one year through five years	1,000			1,317
3.280% Senior Notes, due 2026 ⁽¹⁾	550			550
Due after five years through ten years	550			550
6.125% Senior Notes, due 2032 ⁽¹⁾	159			159
5.350% Senior Notes due 2033 ⁽¹⁾	323			323
5.550% Senior Notes due 2035 ⁽¹⁾	546			546
5.950% Senior Notes, due 2036 ⁽¹⁾	386			386
6.900% Senior Debentures, due 2038	165			165
5.200% Senior Notes, due 2042 ⁽¹⁾	62			62
4.500% Senior Notes, due 2043 ⁽¹⁾	500			500
4.200% Senior Notes, due 2046 ⁽¹⁾	700			700
3.850% Senior Notes, due 2049	500			—
5.100% Subordinated Debentures, due 2053	500			500
5.750% Subordinated Debentures, due 2053	800			800
6.500% Junior Subordinated Debentures, due 2067	500			500
Due after ten years	5,141			4,641

Long-term debt total principal	6,691			6,508
Debt issuance costs	(60		)	(57		)
Total long-term debt	6,631			6,451
Short-term debt ⁽²⁾	—			—
Total debt	$	6,631		$	6,451

⁽¹⁾


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



Debt maturities for each of the next five years and thereafter
($ in millions)
2020	$	—
2021	250
2022	—
2023	750
2024	—
Thereafter	5,691
Total long-term debt principal	$	6,691

On May 16, 2019, the Company repaid $317 million of 7.450% Senior Notes, Series B, at maturity.

On June 10, 2019, the Company issued $500 million of 3.850% Senior Notes due 2049. Interest on the Senior Notes is payable semi-annually in arrears on February 10 and August 10 of each year, beginning on February 10, 2020. The Senior Notes are redeemable at any time at the applicable redemption price prior to

the maturity date. The proceeds of this issuance are used for general corporate purposes.

The Subordinated Debentures may be redeemed (i) in whole at any time or in part from time to time on or after January 15, 2023 for the 5.100% Subordinated Debentures and August 15, 2023 for the 5.750% Subordinated Debentures at their principal amount plus accrued and unpaid interest to, but excluding, the date of redemption; provided that if the Subordinated Debentures are not redeemed in whole, at least $25 million aggregate principal amount must remain outstanding, or (ii) in whole, but not in part, prior to January 15, 2023 for the 5.100% Subordinated Debentures and August 15, 2023 for the 5.750% Subordinated Debentures, within 90 days after the occurrence of certain tax and rating agency events, at their principal amount or, if greater, a make-whole redemption price, plus accrued and unpaid interest to, but excluding, the date of redemption. The 5.750% Subordinated Debentures have this make-whole redemption price provision only when a reduction of equity credit assigned by a rating agency has occurred.

Interest on the 5.100% Subordinated Debentures is payable quarterly at the stated fixed annual rate to January 14, 2023, or any earlier redemption date, and then at an annual rate equal to the three-month LIBOR plus 3.165%. Interest on the 5.750% Subordinated Debentures is payable semi-annually at the stated fixed annual rate to August 14, 2023, or any earlier redemption date, and then quarterly at an annual rate equal to the three-month LIBOR plus 2.938%. The Company may elect to defer payment of interest on the Subordinated Debentures for one or more consecutive interest periods that do not exceed five years. During a deferral period, interest will continue to accrue on the Subordinated Debentures at the then-applicable rate and deferred interest will compound on each interest payment date. If all deferred interest on the Subordinated Debentures is paid, the Company can again defer interest payments.

As of December 31, 2019, the Company had outstanding $500 million of Series A 6.500% Fixed-to-Floating Rate Junior Subordinated Debentures (“Debentures”). The scheduled maturity date for the Debentures is May 15, 2057 with a final maturity date of May 15, 2067. The Debentures may be redeemed (i) in whole or in part, at any time on or after May 15, 2037 at the principal amount plus accrued and unpaid interest to the date of redemption, or (ii) in certain circumstances, in whole or in part, prior to May 15, 2037 at the principal amount plus accrued and unpaid interest to the date of redemption or, if greater, a make-whole price.

Interest on the Debentures is payable semi-annually at the stated fixed annual rate to May 15, 2037, and then payable quarterly at an annual rate equal to the three-month LIBOR plus 2.120%. The Company may elect at one or more times to defer payment of interest on the Debentures for one or more consecutive interest periods that do not exceed 10 years. Interest compounds during such deferral periods at the rate in effect for each period. The interest deferral feature obligates the Company in certain circumstances to issue common stock or certain other types of securities if it cannot otherwise raise sufficient funds to make the required interest payments. The Company has reserved 75 million shares of its authorized and unissued common stock to satisfy this obligation.

The continuation of LIBOR on the current basis is not guaranteed after 2021 and LIBOR may be discontinued or modified by 2021. The Subordinated Debentures allow for the use of an alternative benchmark if LIBOR is no longer available.

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

In connection with the issuance of the Debentures, the Company entered into a replacement capital

covenant (“RCC”). This covenant was not intended for the benefit of the holders of the Debentures and could not be enforced by them. Rather, it was for the benefit of holders of one or more other designated series of the Company’s indebtedness (“covered debt”), currently the 5.750% Subordinated Debentures due 2053. Pursuant to the RCC, the Company has agreed that it will not repay, redeem, or purchase the Debentures on or before May 15, 2067 (or such earlier date on which the RCC terminates by its terms) unless, subject to certain limitations, the Company has received net cash proceeds in specified amounts from the sale of common stock or certain other qualifying securities. The promises and covenants contained in the RCC will not apply if (i) S&P upgrades the Company’s issuer credit rating to A or above, (ii) the Company redeems the Debentures due to a tax event, (iii) after notice of redemption has been given by the Company and a market disruption event occurs preventing the Company from raising proceeds in accordance with the RCC, or (iv) the Company repurchases or redeems up to 10% of the outstanding principal of the Debentures in any one-year period, provided that no more than 25% will be so repurchased, redeemed or purchased in any ten-year period.

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

To manage short-term liquidity, the Company maintains a commercial paper program and a credit facility as a potential source of funds. These include a $1.00 billion unsecured revolving credit facility and a commercial paper program with a borrowing limit of $1.00 billion. In April 2016, the Company extended the maturity date of the facility to April 2021. This facility contains an increase provision that would allow up to an additional $500 million of borrowing. This facility has a financial covenant requiring the Company not to exceed a 37.5% debt to capitalization ratio as defined in the agreement. Although the right to borrow under the facility is not subject to a minimum rating requirement, the costs of maintaining the facility and borrowing under it are based on the ratings of the Company’s senior unsecured, unguaranteed long-term debt. The total amount outstanding at any point in time under the combination of the commercial paper

program and the credit facility cannot exceed the amount that can be borrowed under the credit facility. No amounts were outstanding under the credit facility as of December 31, 2019 or 2018. The Company had no commercial paper outstanding as of December 31, 2019 or 2018.

The Company paid $312 million, $330 million and $332 million of interest on debt in 2019, 2018 and 2017, respectively.

The Company had $389 million and $260 million of investment-related debt that is reported in other liabilities and accrued expenses as of December 31, 2019 and 2018, respectively.

During 2018, the Company filed a universal shelf registration statement with the Securities and Exchange Commission (“SEC”) that expires in 2021.

The registration statement covers an unspecified amount of securities and can be used to issue debt securities, common stock, preferred stock, depositary shares, warrants, stock purchase contracts, stock purchase units and securities of trust subsidiaries.

Common stock The Company had 900 million shares of issued common stock of which 319 million shares were outstanding and 581 million shares were held in treasury as of December 31, 2019. In 2019, the Company acquired 16 million shares at an average cost of $110.37 and reissued 3 million net shares under equity incentive plans.

Preferred stock All outstanding preferred stock represents noncumulative perpetual preferred stock with a $1.00 par value per share and a liquidation preference of $25,000 per share.



Total preferred stock outstanding
	As of December 31,		Aggregate liquidation preference ($ in millions)						Dividend per depository share ⁽¹⁾						Aggregate dividend payment ($ in millions)
	2019	2018	2019		2018		Dividend rate		2019		2018		2017		2019			2018			2017
Series A	11,500	11,500	$	287.5	$	287.5	5.625	%	$	1.41	$	1.41	$	1.41	$	16		$	16		$	16
Series C	—	—	—		—		6.750	%	—		1.69		1.69		—			26		⁽²⁾	26
Series D	—	5,400	—		135.0		6.625	%	1.66		1.66		1.66		9		⁽²⁾	9			9
Series E	—	29,900	—		747.5		6.625	%	1.66		1.66		1.66		49		⁽²⁾	49			49
Series F	—	10,000	—		250.0		6.250	%	1.56		1.56		1.56		16		⁽²⁾	16			16
Series G	23,000	23,000	575.0		575.0		5.625	%	1.41		1.41		—		32			18			—
Series H	46,000	—	1,150.0		—		5.100	%	1.28		—		—		12			—			—
Series I	12,000	—	300.0		—		4.750	%	1.19		—		—		—			—			—
Total	92,500	79,800	$	2,313	$	1,995									$	134	⁽²⁾	$	134	⁽²⁾	$	116


⁽¹⁾	Each depositary share represents a 1/1,000^th interest in a share of preferred stock.


⁽²⁾	Excludes $37 million and $13 million in 2019 and 2018, respectively, related to original issuance costs in preferred stock dividends on the Consolidated Statements of Operations and Consolidated Statements of Shareholders’ Equity as a result of the preferred stock redemptions.

On August 8, 2019, the Company issued 46,000 shares of 5.100% Fixed Rate Noncumulative Perpetual Preferred Stock, Series H, par value $1.00 per share and liquidation preference $25,000 per share, for gross proceeds of $1.15 billion.

On October 15, 2019, the Company redeemed all 5,400 shares of its Fixed Rate Noncumulative Perpetual Preferred Stock, Series D, par value $1.00 per share and liquidation preference $25,000 per share, all 29,900 shares of its Fixed Rate Noncumulative Perpetual Preferred Stock, Series E, par value $1.00 per share and liquidation preference $25,000 per share, all 10,000 shares of its Fixed Rate Noncumulative Perpetual Preferred Stock, Series F, par value $1.00 per share and liquidation preference $25,000 per share, and the corresponding depositary shares. The total redemption payment was $1.13 billion, using the proceeds from the issuance of the Fixed Rate Noncumulative Perpetual Preferred Stock, Series H. In 2019, the Company recognized $37 million of original issuance costs in preferred stock dividends on the Consolidated Statements of Operations and Consolidated Statements of Shareholders’ Equity as a result of the preferred stock redemptions.

On November 8, 2019, the Company issued 12,000 shares of 4.750% Fixed Rate Noncumulative Perpetual Preferred Stock, Series I, par value $1.00 per share and liquidation preference $25,000 per share, for gross proceeds of $300 million.

Subsequent event On January 15, 2020, the Company redeemed all 11,500 shares of its Fixed Rate Noncumulative Preferred Stock, Series A, par value $1.00 per share and liquidation preference $25,000 per share and the corresponding depositary shares. The total redemption payment was $288 million, using the proceeds from the issuance of the Fixed Rate Noncumulative Perpetual Preferred Stock, Series I. In the first quarter of 2020, the Company will recognize $10 million of original issuance costs in preferred stock dividends on the Consolidated Statements of Operations and Consolidated Statements of Shareholders’ Equity as a result of the preferred stock redemption.

The preferred stock ranks senior to the Company’s common stock with respect to the payment of dividends and liquidation rights. The Company will pay dividends on the preferred stock on a noncumulative

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

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

the restrictions on dividends will continue until the Company is able again to satisfy the test on a dividend declaration date. In addition, in the case of a restriction arising under (2) above, the restrictions on dividends will continue until consolidated shareholders’ equity (excluding AOCI, and subject to certain other adjustments relating to changes in U.S. GAAP) has increased, or has declined by less than 20%, in either case as compared to its level at the end of the benchmark quarter for each dividend payment date as to which dividend restrictions were imposed.

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

The preferred stock is perpetual and has no maturity date. The preferred stock is redeemable at the Company’s option in whole or in part, on or after April 15, 2023 for Series G, October 15, 2024 for Series H and January 15, 2025 for Series I at a redemption price of $25,000 per share of preferred stock, plus declared and unpaid dividends. Prior to April 15, 2023 for Series G, October 15, 2024 for Series H and January 15, 2025 for Series I, the preferred stock is redeemable at the Company’s option, in whole but not in part, within 90 days of the occurrence of certain regulatory capital event at a redemption price equal to $25,000 or $25,500 per share or a certain rating agency event at a redemption price equal to $25,000 or $25,500 per share, plus declared and unpaid dividends for Series G and for Series H and I, respectively.

Reinsurance and Indemnification - Amounts Ceded to Prudential (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Contract benefits
Ceded Credit Risk [Line Items]
Reinsurance ceded amount	$ 165	$ 240	$ 179
Interest credited to contractholder funds
Ceded Credit Risk [Line Items]
Reinsurance ceded amount	20	24	25
Prudential \| Premiums and contract charges \| Allstate Financial
Ceded Credit Risk [Line Items]
Reinsurance ceded amount	65	72	76
Prudential \| Contract benefits \| Allstate Financial
Ceded Credit Risk [Line Items]
Reinsurance ceded amount	4	87	7
Prudential \| Interest credited to contractholder funds \| Allstate Financial
Ceded Credit Risk [Line Items]
Reinsurance ceded amount	19	20	20
Prudential \| Operating costs and expenses \| Allstate Financial
Ceded Credit Risk [Line Items]
Reinsurance ceded amount	$ 12	$ 14	$ 15

Investments - Mortgage loans (Details) $ in Millions	12 Months Ended
Investments - Mortgage loans (Details) $ in Millions	Dec. 31, 2019 USD ($) loan	Dec. 31, 2018 USD ($)
Mortgage Loans on Real Estate
Carrying value	$ 4,817	$ 4,670
Percent	100.00%	100.00%
Mortgage loans, not in foreclosure
Mortgage Loans on Real Estate
Number of loans \| loan	286
Carrying value	$ 4,817
Percent	100.00%
Mortgage loans, not in foreclosure \| 2020
Mortgage Loans on Real Estate
Number of loans \| loan	9
Carrying value	$ 58
Percent	1.20%
Mortgage loans, not in foreclosure \| 2021
Mortgage Loans on Real Estate
Number of loans \| loan	36
Carrying value	$ 446
Percent	9.30%
Mortgage loans, not in foreclosure \| 2022
Mortgage Loans on Real Estate
Number of loans \| loan	28
Carrying value	$ 460
Percent	9.50%
Mortgage loans, not in foreclosure \| 2023
Mortgage Loans on Real Estate
Number of loans \| loan	52
Carrying value	$ 776
Percent	16.10%
Mortgage loans, not in foreclosure \| Thereafter
Mortgage Loans on Real Estate
Number of loans \| loan	161
Carrying value	$ 3,077
Percent	63.90%
Apartment complex
Mortgage Loans on Real Estate
Percent	36.80%	34.40%
Office buildings
Mortgage Loans on Real Estate
Percent	22.60%	24.50%
Warehouse
Mortgage Loans on Real Estate
Percent	16.80%	15.80%
Retail
Mortgage Loans on Real Estate
Percent	13.40%	14.40%
Other
Mortgage Loans on Real Estate
Percent	10.40%	10.90%
Texas
Mortgage Loans on Real Estate
Percent	16.90%	14.90%
California
Mortgage Loans on Real Estate
Percent	15.10%	16.40%
Illinois
Mortgage Loans on Real Estate
Percent	7.10%	7.80%
Florida
Mortgage Loans on Real Estate
Percent	6.40%	6.10%
New Jersey
Mortgage Loans on Real Estate
Percent	5.60%	6.80%
North Carolina
Mortgage Loans on Real Estate
Percent	4.50%	5.10%

Investments

12 Months Ended

Dec. 31, 2019

Investments [Abstract]

Investments



Note 5	Investments



Amortized cost, gross unrealized gains (losses) and fair value for fixed income securities
	Amortized cost		Gross unrealized					Fair value
($ in millions)	Amortized cost		Gains		Losses			Fair value
December 31, 2019
U.S. government and agencies	$	4,971	$	141	$	(26	)	$	5,086
Municipal	8,080		551		(11		)	8,620
Corporate	41,090		2,035		(47		)	43,078
Foreign government	968		16		(5		)	979
ABS	860		8		(6		)	862
MBS	324		96		(1		)	419
Total fixed income securities	$	56,293	$	2,847	$	(96	)	$	59,044

December 31, 2018
U.S. government and agencies	$	5,386	$	137	$	(6	)	$	5,517
Municipal	8,963		249		(43		)	9,169
Corporate	40,557		491		(890		)	40,158
Foreign government	739		13		(5		)	747
ABS	1,049		6		(10		)	1,045
MBS	440		97		(3		)	534
Total fixed income securities	$	57,134	$	993	$	(957	)	$	57,170



Scheduled maturities for fixed income securities
	As of December 31, 2019
($ in millions)	Amortized cost		Fair value
Due in one year or less	$	3,214	$	3,239
Due after one year through five years	24,108		24,781
Due after five years through ten years	18,194		19,177
Due after ten years	9,593		10,566
	55,109		57,763
ABS and MBS	1,184		1,281
Total	$	56,293	$	59,044

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



Net investment income
	For the years ended December 31,
($ in millions)	2019			2018			2017
Fixed income securities	$	2,175		$	2,077		$	2,078
Equity securities	206			170			174
Mortgage loans	220			217			206
Limited partnership interests	471			705			889
Short-term investments	102			73			30
Other	262			272			236
Investment income, before expense	3,436			3,514			3,613
Investment expense	(277		)	(274		)	(212		)
Net investment income	$	3,159		$	3,240		$	3,401



Realized capital gains (losses) by asset type
	For the years ended December 31,
($ in millions)	2019			2018			2017
Fixed income securities	$	461		$	(237	)	$	94
Equity securities	1,210			(594		)	255
Mortgage loans	—			2			1
Limited partnership interests	200			(101		)	132
Derivatives	(15		)	46			(46		)
Other	29			7			9
Realized capital gains and losses	$	1,885		$	(877	)	$	445



Realized capital gains (losses) by transaction type
	For the years ended December 31,
($ in millions)	2019			2018			2017
Impairment write-downs	$	(47	)	$	(14	)	$	(102	)
Change in intent write-downs	—			—			(48		)
Net OTTI losses recognized in earnings	(47		)	(14		)	(150		)
Sales	575			(215		)	641
Valuation of equity investments ⁽¹⁾	1,372			(691		)	—
Valuation and settlements of derivative instruments	(15		)	43			(46		)
Realized capital gains and losses	$	1,885		$	(877	)	$	445


⁽¹⁾	Includes valuation of equity securities and certain limited partnership interests where the underlying assets are predominately public equity securities.

Sales of fixed income securities resulted in gross gains of $607 million, $120 million and $737 million and gross losses of $132 million, $347 million and $276 million during 2019, 2018 and 2017, respectively.

The following table presents the net pre-tax appreciation (decline) recognized in net income of equity securities and limited partnership interests carried at fair value that are still held as of December 31, 2019 and 2018, respectively.



Net appreciation (decline) recognized in net income
	For the years ended December 31,
($ in millions)	2019		2018
Equity securities	$	1,073	$	(261	)
Limited partnership interests carried at fair value	149		249
Total	$	1,222	$	(12	)



OTTI losses by asset type
	For the years ended December 31,
($ in millions)	2019									2018									2017
	Gross			Included in OCI			Net			Gross			Included in OCI			Net			Gross			Included in OCI			Net
Fixed income securities:
Municipal	$	(2	)	$	2		$	—		$	—		$	—		$	—		$	(1	)	$	(3	)	$	(4	)
Corporate	(5		)	(2		)	(7		)	(4		)	2			(2		)	(9		)	3			(6		)
ABS	(4		)	—			(4		)	(1		)	(2		)	(3		)	(1		)	(2		)	(3		)
MBS	(4		)	1			(3		)	(4		)	(1		)	(5		)	(11		)	(2		)	(13		)
Total fixed income securities	(15		)	1			(14		)	(9		)	(1		)	(10		)	(22		)	(4		)	(26		)
Equity securities	—			—			—			—			—			—			(86		)	—			(86		)
Mortgage loans	—			—			—			—			—			—			(1		)	—			(1		)
Limited partnership interests	(6		)	—			(6		)	(3		)	—			(3		)	(32		)	—			(32		)
Other	(27		)	—			(27		)	(1		)	—			(1		)	(5		)	—			(5		)
OTTI losses	$	(48	)	$	1		$	(47	)	$	(13	)	$	(1	)	$	(14	)	$	(146	)	$	(4	)	$	(150	)



OTTI losses included in AOCI at the time of impairment for fixed income securities which were not included in earnings ⁽¹⁾
	As of December 31,
($ in millions)	2019			2018
Municipal	$	(7	)	$	(5	)
Corporate	—			(2		)
ABS	(10		)	(10		)
MBS	(56		)	(69		)
Total	$	(73	)	$	(86	)


⁽¹⁾	The amounts exclude $161 million and $180 million as of December 31, 2019 and 2018, respectively, of net unrealized gains related to changes in valuation of the fixed income securities subsequent to the impairment measurement date.



Rollforward of the cumulative credit losses recognized in earnings for fixed income securities held
	As of December 31,
($ in millions)	2019			2018			2017
Beginning balance	$	(204	)	$	(226	)	$	(318	)
Additional credit loss for securities previously other-than-temporarily impaired	(10		)	(7		)	(18		)
Additional credit loss for securities not previously other-than-temporarily impaired	(4		)	(3		)	(8		)
Reduction in credit loss for securities disposed or collected	32			30			116
Change in credit loss due to accretion of increase in cash flows	—			2			2
Ending balance	$	(186	)	$	(204	)	$	(226	)

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 OTTI 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 AOCI. 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 included in AOCI
($ in millions)	Fair value		Gross unrealized					Unrealized net gains (losses)
December 31, 2019			Gains		Losses
Fixed income securities	$	59,044	$	2,847	$	(96	)	$	2,751
Short-term investments	4,256		—		—			—
Derivative instruments	—		—		(3		)	(3		)
EMA limited partnerships ⁽¹⁾								(4		)
Unrealized net capital gains and losses, pre-tax								2,744
Amounts recognized for:
Insurance reserves ⁽²⁾								(126		)
DAC and DSI ⁽³⁾								(224		)
Amounts recognized								(350		)
Deferred income taxes								(507		)
Unrealized net capital gains and losses, after-tax								$	1,887

December 31, 2018
Fixed income securities	$	57,170	$	993	$	(957	)	$	36
Short-term investments	3,027		—		—			—
Derivative instruments	—		—		(3		)	(3		)
EMA limited partnerships								—
Unrealized net capital gains and losses, pre-tax								33
Amounts recognized for:
Insurance reserves								—
DAC and DSI								(33		)
Amounts recognized								(33		)
Deferred income taxes								(2		)
Unrealized net capital gains and losses, after-tax								$	(2	)


⁽¹⁾	Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of EMA limited partnerships’ OCI. Fair value and gross unrealized gains and losses are not applicable.


⁽²⁾	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 lower interest rates, resulting in a premium deficiency. This adjustment primarily relates to structured settlement annuities with life contingencies (a type of immediate fixed annuities).


⁽³⁾	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.



Change in unrealized net capital gains (losses)
	For the years ended December 31,
($ in millions)	2019			2018			2017
Fixed income securities	$	2,715		$	(1,431	)	$	204
Equity securities ⁽¹⁾	—			—			651
Derivative instruments	—			(2		)	(3		)
EMA limited partnerships	(4		)	(1		)	5
Total	2,711			(1,434		)	857
Amounts recognized for:
Insurance reserves	(126		)	315			(315		)
DAC and DSI	(191		)	163			(50		)
Amounts recognized	(317		)	478			(365		)
Deferred income taxes	(505		)	202			117
Increase (decrease) in unrealized net capital gains and losses, after-tax	$	1,889		$	(754	)	$	609


⁽¹⁾	Upon adoption of the recognition and measurement accounting standard on January 1, 2018, $1.16 billion of pre-tax unrealized net capital gains for equity securities were reclassified from AOCI to retained income.

Portfolio monitoring

The Company has a comprehensive portfolio monitoring process to identify and evaluate each fixed income 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 OCI.

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 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 OTTI using all reasonably available information relevant to the collectability or recovery of the security. Inherent in the Company’s evaluation of OTTI for these 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.



Gross unrealized losses and fair value by type and length of time held in a continuous unrealized loss position
	Less than 12 months						12 months or more
($ in millions)	Number of issues	Fair value		Unrealized losses			Number of issues	Fair value		Unrealized losses			Total unrealized losses
December 31, 2019
Fixed income securities
U.S. government and agencies	31	$	1,713	$	(26	)	10	$	26	$	—		$	(26	)
Municipal	307	576		(9		)	1	14		(2		)	(11		)
Corporate	186	1,392		(20		)	65	485		(27		)	(47		)
Foreign government	55	412		(4		)	6	102		(1		)	(5		)
ABS	36	193		(2		)	23	160		(4		)	(6		)
MBS	27	15		—			123	14		(1		)	(1		)
Total fixed income securities	642	$	4,301	$	(61	)	228	$	801	$	(35	)	$	(96	)
Investment grade fixed income securities	581	$	3,878	$	(41	)	185	$	594	$	(20	)	$	(61	)
Below investment grade fixed income securities	61	423		(20		)	43	207		(15		)	(35		)
Total fixed income securities	642	$	4,301	$	(61	)	228	$	801	$	(35	)	$	(96	)

December 31, 2018
Fixed income securities
U.S. government and agencies	11	$	55	$	—		38	$	364	$	(6	)	$	(6	)
Municipal	943	1,633		(10		)	1,147	1,554		(33		)	(43		)
Corporate	1,736	19,243		(543		)	645	8,374		(347		)	(890		)
Foreign government	7	20		(1		)	27	412		(4		)	(5		)
ABS	64	454		(5		)	28	161		(5		)	(10		)
MBS	169	37		—			197	52		(3		)	(3		)
Total fixed income securities	2,930	$	21,442	$	(559	)	2,082	$	10,917	$	(398	)	$	(957	)
Investment grade fixed income securities	2,348	$	17,485	$	(331	)	2,021	$	10,626	$	(360	)	$	(691	)
Below investment grade fixed income securities	582	3,957		(228		)	61	291		(38		)	(266		)
Total fixed income securities	2,930	$	21,442	$	(559	)	2,082	$	10,917	$	(398	)	$	(957	)



Gross unrealized losses by unrealized loss position and credit quality as of December 31, 2019
($ in millions)	Investment grade			Below investment grade			Total
Fixed income securities with unrealized loss position less than 20% of amortized cost ^{(1) (2)}	$	(48	)	$	(27	)	$	(75	)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost^{(3) (4)}	(13		)	(8		)	(21		)
Total unrealized losses	$	(61	)	$	(35	)	$	(96	)


⁽¹⁾	Below investment grade fixed income securities include $14 million that have been in an unrealized loss position for less than twelve months.


⁽²⁾	Related to securities with an unrealized loss position less than 20% of amortized cost, the degree of which suggests that these securities do not pose a high risk of being other-than-temporarily impaired.


⁽³⁾	No below investment grade fixed income securities have been in an unrealized loss position for a period of twelve or more consecutive months.


⁽⁴⁾	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.

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. The unrealized losses are expected to reverse as the securities approach maturity.

ABS and MBS 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.

As of December 31, 2019, 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.

Limited partnerships

Investments in limited partnership interests include interests in private equity funds, real estate funds and other funds. As of December 31, 2019 and 2018, the carrying value of EMA limited partnerships totaled $6.26 billion and $5.73 billion, respectively, and limited partnerships carried at fair value totaled $1.81 billion and $1.78 billion, respectively. Principal factors influencing carrying value appreciation or decline include operating performance, comparable public company earnings multiples, capitalization rates and the economic environment. For equity method limited partnerships, the Company recognizes an impairment loss 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. Changes in fair value limited partnerships are recorded through net investment income and therefore are not tested for impairment.

Mortgage loans

The Company’s mortgage loans are commercial mortgage loans collateralized by a variety of commercial real estate property types located across the United States and totaled, net of valuation allowance, $4.82 billion and $4.67 billion as of December 31, 2019 and 2018, respectively. Substantially all of the commercial mortgage loans are non-recourse to the borrower.



Principal geographic distribution of commercial real estate exceeding 5% of the mortgage loans portfolio
	As of December 31,
(% of mortgage loan portfolio carrying value)	2019		2018
Texas	16.9	%	14.9	%
California	15.1		16.4
Illinois	7.1		7.8
Florida	6.4		6.1
New Jersey	5.6		6.8
North Carolina	4.5		5.1



Types of properties collateralizing the mortgage loan portfolio
	As of December 31,
(% of mortgage loan portfolio carrying value)	2019		2018
Apartment complex	36.8	%	34.4	%
Office buildings	22.6		24.5
Warehouse	16.8		15.8
Retail	13.4		14.4
Other	10.4		10.9
Total	100.0	%	100.0	%



Contractual maturities of the mortgage loan portfolio
	As of December 31, 2019
($ in millions)	Number of loans	Carrying value		Percent
2020	9	$	58	1.2	%
2021	36	446		9.3
2022	28	460		9.5
2023	52	776		16.1
Thereafter	161	3,077		63.9
Total	286	$	4,817	100.0	%

Mortgage loans are evaluated for impairment on a specific loan basis through a quarterly credit monitoring process and review of key credit quality indicators. Mortgage loans are considered impaired when it is probable that the Company will not collect the contractual principal and interest. Valuation allowances are established for impaired loans to reduce the carrying value to the fair value of the collateral less costs to sell or the present value of the loan’s expected future repayment cash flows discounted at the loan’s original effective interest rate. Impaired mortgage loans may not have a valuation allowance when the fair value of the collateral less costs to sell is higher than the carrying value. Valuation allowances are adjusted for subsequent changes in the fair value of the collateral less costs to sell or present value of the loan’s expected future repayment cash flows. Mortgage loans are charged off against their corresponding valuation allowances when there is no reasonable expectation of recovery. The impairment evaluation is non-statistical in respect to

the aggregate portfolio but considers facts and circumstances attributable to each loan. It is not considered probable that additional impairment losses, beyond those identified on a specific loan basis, have been incurred as of December 31, 2019.

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.



Carrying value of non-impaired mortgage loans summarized by debt service coverage ratio distribution
	As of December 31,
($ in millions)	2019						2018
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	$	13	$	32	$	45	$	6	$	31	$	37
1.0 - 1.25	225		—		225		273		—		273
1.26 - 1.50	1,219		18		1,237		1,192		—		1,192
Above 1.50	3,264		38		3,302		3,063		101		3,164
Total non-impaired mortgage loans	$	4,721	$	88	$	4,809	$	4,534	$	132	$	4,666

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.



Net carrying value of impaired mortgage loans
	As of December 31,
($ in millions)	2019		2018
Impaired mortgage loans with a valuation allowance	$	8	$	4
Impaired mortgage loans without a valuation allowance	—		—
Total impaired mortgage loans	$	8	$	4
Valuation allowance on impaired mortgage loans	$	3	$	3

The average balance of impaired loans was $5 million, $4 million and $7 million during 2019, 2018 and 2017, respectively.



Rollforward of the valuation allowance on impaired mortgage loans
	For the years ended December 31,
($ in millions)	2019		2018		2017
Beginning balance	$	3	$	3	$	3
Net increase in valuation allowance	—		—		1
Charge offs	—		—		(1		)
Ending balance	$	3	$	3	$	3

Payments on all mortgage loans were current as of December 31, 2019, 2018 and 2017.

Municipal bonds

The Company maintains a diversified portfolio of municipal bonds, including tax exempt and taxable securities, which totaled $8.62 billion and $9.17 billion as of December 31, 2019 and 2018, respectively.

The municipal bond portfolio includes general obligations of state and local issuers and revenue bonds (including pre-refunded bonds, which are bonds for which an irrevocable trust has been established to fund the remaining payments of principal and interest).



Principal geographic distribution of municipal bond issuers exceeding 5% of the portfolio
	As of December 31,
(% of municipal bond portfolio carrying value)	2019		2018
Texas	12.7	%	12.3	%
California	8.6		7.4
Colorado	5.8		4.0
Washington	5.5		6.2
New York	3.7		5.6

Short-term investments

Short-term investments, including money market funds, commercial paper, U.S. Treasury bills and other short-term investments, are carried at fair value. As of December 31, 2019 and 2018, the fair value of short-term investments totaled $4.26 billion and $3.03 billion, respectively.

Other investments

Other investments primarily consist of bank loans, real estate, policy loans, agent loans and derivatives. Bank loans are primarily senior secured corporate loans and are carried at amortized cost. Policy loans are carried at unpaid principal balances. Real estate is carried at cost less accumulated depreciation. Agent

loans are loans issued to exclusive Allstate agents and are carried at unpaid principal balances, net of valuation allowances and unamortized deferred fees or costs. Derivatives are carried at fair value.



Other investments by asset type
($ in millions)	December 31, 2019		December 31, 2018
Bank loans	$	1,204	$	1,350
Real estate	1,005		791
Policy loans	894		891
Agent loans	666		620
Derivatives and other	236		200
Total	$	4,005	$	3,852

Concentration of credit risk

As of December 31, 2019, the Company is not exposed to any credit concentration risk of a single issuer and its affiliates greater than 10% of the Company’s shareholders’ equity, other than the U.S. government and its agencies.

Securities loaned

The Company’s business activities include securities lending programs with third parties, mostly large banks. As of December 31, 2019 and 2018, fixed income and equity securities with a carrying value of $1.74 billion and $1.40 billion, respectively, were on loan under these agreements. Interest income on collateral, net of fees, was $5 million, $4 million and $7 million in 2019, 2018 and 2017, respectively.

Other investment information

Included in fixed income securities are below investment grade assets totaling $7.15 billion and $5.23 billion as of December 31, 2019 and 2018, respectively.

As of December 31, 2019, fixed income securities and short-term investments with a carrying value of $147 million were on deposit with regulatory authorities as required by law.

As of December 31, 2019, the carrying value of fixed income securities and other investments that were non-income producing was $40 million.

Investments - Amortized cost, gross unrealized gains and losses and fair value for fixed income securities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Schedule of Available for Sale Securities
Amortized cost	$ 56,293	$ 57,134
Gross unrealized gains	2,847	993
Gross unrealized losses	(96)	(957)
Fixed income securities	59,044	57,170
U.S. government and agencies
Schedule of Available for Sale Securities
Amortized cost	4,971	5,386
Gross unrealized gains	141	137
Gross unrealized losses	(26)	(6)
Fixed income securities	5,086	5,517
Municipal
Schedule of Available for Sale Securities
Amortized cost	8,080	8,963
Gross unrealized gains	551	249
Gross unrealized losses	(11)	(43)
Fixed income securities	8,620	9,169
Corporate
Schedule of Available for Sale Securities
Amortized cost	41,090	40,557
Gross unrealized gains	2,035	491
Gross unrealized losses	(47)	(890)
Fixed income securities	43,078	40,158
Foreign government
Schedule of Available for Sale Securities
Amortized cost	968	739
Gross unrealized gains	16	13
Gross unrealized losses	(5)	(5)
Fixed income securities	979	747
ABS
Schedule of Available for Sale Securities
Amortized cost	860	1,049
Gross unrealized gains	8	6
Gross unrealized losses	(6)	(10)
Fixed income securities	862	1,045
MBS
Schedule of Available for Sale Securities
Amortized cost	324	440
Gross unrealized gains	96	97
Gross unrealized losses	(1)	(3)
Fixed income securities	$ 419	$ 534

Reserve for Property-Liability Insurance Claims and Claims Expense - Claims and allocated claim adjustment expenses, net of reinsurance (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) claim	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Increase (decrease) in claims and claims expense
Liabilities for claims and claim adjustment expenses, net of recoverables	$ 20,800
Auto insurance - liability coverage
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of recoverables	43,607
Prior year reserve reestimates	(191)
Prior Year Reserve Estimates	(234)
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables	31,392
All outstanding liabilities before 2015, net of recoverables	1,274
Liabilities for claims and claim adjustment expenses, net of recoverables	13,489
Auto insurance - liability coverage \| Accident Year 2015
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of recoverables	8,578	$ 8,617	$ 8,677	$ 8,733	$ 8,763
Prior year reserve reestimates	(39)
IBNR reserves plus expected development on reported claims	$ 519
Cumulative number of reported claims \| claim	2,383,853
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables	$ 8,059	7,565	6,883	5,837	3,524
Auto insurance - liability coverage \| Accident Year 2016
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of recoverables	8,683	8,732	8,833	9,030
Prior year reserve reestimates	(49)
IBNR reserves plus expected development on reported claims	$ 988
Cumulative number of reported claims \| claim	2,399,890
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables	$ 7,695	6,849	5,768	3,485
Auto insurance - liability coverage \| Accident Year 2017
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of recoverables	8,305	8,389	8,457
Prior year reserve reestimates	(84)
IBNR reserves plus expected development on reported claims	$ 1,777
Cumulative number of reported claims \| claim	2,214,254
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables	$ 6,528	5,330	3,149
Auto insurance - liability coverage \| Accident Year 2018
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of recoverables	8,708	8,727
Prior year reserve reestimates	(19)
IBNR reserves plus expected development on reported claims	$ 3,093
Cumulative number of reported claims \| claim	2,169,753
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables	$ 5,615	3,229
Auto insurance - liability coverage \| Accident Year 2019
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of recoverables	9,333
IBNR reserves plus expected development on reported claims	$ 5,838
Cumulative number of reported claims \| claim	2,108,919
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables	$ 3,495
Auto insurance - liability coverage \| Claims incurred and paid from before 2015
Increase (decrease) in claims and claims expense
Prior Year Reserve Estimates	(56)
Auto insurance - liability coverage \| Unallocated loss adjustment expenses (“ULAE”)
Increase (decrease) in claims and claims expense
Prior Year Reserve Estimates	14
Auto insurance - physical damage coverage
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of recoverables	25,514
Prior year reserve reestimates	(83)
Prior Year Reserve Estimates	(89)
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables	25,248
All outstanding liabilities before 2015, net of recoverables	7
Liabilities for claims and claim adjustment expenses, net of recoverables	273
Auto insurance - physical damage coverage \| Accident Year 2015
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of recoverables	4,656	4,660	4,669	4,681	4,653
Prior year reserve reestimates	(4)
IBNR reserves plus expected development on reported claims	$ 2
Cumulative number of reported claims \| claim	4,390,288
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables	$ 4,654	4,655	4,658	4,672	4,507
Auto insurance - physical damage coverage \| Accident Year 2016
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of recoverables	5,020	5,025	5,052	5,125
Prior year reserve reestimates	(5)
IBNR reserves plus expected development on reported claims	$ 5
Cumulative number of reported claims \| claim	4,431,735
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables	$ 5,016	5,019	5,031	4,887
Auto insurance - physical damage coverage \| Accident Year 2017
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of recoverables	5,025	5,037	5,119
Prior year reserve reestimates	(12)
IBNR reserves plus expected development on reported claims	$ (2)
Cumulative number of reported claims \| claim	4,236,640
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables	$ 5,027	5,036	4,845
Auto insurance - physical damage coverage \| Accident Year 2018
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of recoverables	5,154	5,216
Prior year reserve reestimates	(62)
IBNR reserves plus expected development on reported claims	$ 17
Cumulative number of reported claims \| claim	4,306,335
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables	$ 5,137	4,968
Auto insurance - physical damage coverage \| Accident Year 2019
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of recoverables	5,659
IBNR reserves plus expected development on reported claims	$ 244
Cumulative number of reported claims \| claim	4,312,306
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables	$ 5,414
Auto insurance - physical damage coverage \| Claims incurred and paid from before 2015
Increase (decrease) in claims and claims expense
Prior Year Reserve Estimates	(4)
Auto insurance - physical damage coverage \| Unallocated loss adjustment expenses (“ULAE”)
Increase (decrease) in claims and claims expense
Prior Year Reserve Estimates	(2)
Homeowners
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of recoverables	21,481
Prior year reserve reestimates	78
Prior Year Reserve Estimates	65
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables	19,618
All outstanding liabilities before 2015, net of recoverables	126
Liabilities for claims and claim adjustment expenses, net of recoverables	1,989
Homeowners \| Accident Year 2015
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of recoverables	3,520	3,537	3,553	3,611	3,558
Prior year reserve reestimates	(17)
IBNR reserves plus expected development on reported claims	$ 36
Cumulative number of reported claims \| claim	721,328
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables	$ 3,484	3,458	3,399	3,296	$ 2,586
Homeowners \| Accident Year 2016
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of recoverables	3,951	3,955	3,993	3,959
Prior year reserve reestimates	(4)
IBNR reserves plus expected development on reported claims	$ 77
Cumulative number of reported claims \| claim	813,728
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables	$ 3,874	3,809	3,678	$ 2,947
Homeowners \| Accident Year 2017
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of recoverables	4,612	4,617	4,475
Prior year reserve reestimates	(5)
IBNR reserves plus expected development on reported claims	$ 177
Cumulative number of reported claims \| claim	907,218
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables	$ 4,435	4,246	$ 3,227
Homeowners \| Accident Year 2018
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of recoverables	4,851	4,747
Prior year reserve reestimates	104
IBNR reserves plus expected development on reported claims	$ 340
Cumulative number of reported claims \| claim	807,012
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables	$ 4,511	$ 3,489
Homeowners \| Accident Year 2019
Increase (decrease) in claims and claims expense
Incurred claims and allocated claim adjustment expenses, net of recoverables	4,547
IBNR reserves plus expected development on reported claims	$ 1,233
Cumulative number of reported claims \| claim	721,434
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables	$ 3,314
Homeowners \| Claims incurred and paid from before 2015
Increase (decrease) in claims and claims expense
Prior Year Reserve Estimates	(36)
Homeowners \| Unallocated loss adjustment expenses (“ULAE”)
Increase (decrease) in claims and claims expense
Prior Year Reserve Estimates	23
Other personal lines
Increase (decrease) in claims and claims expense
Liabilities for claims and claim adjustment expenses, net of recoverables	1,326
Commercial lines
Increase (decrease) in claims and claims expense
Liabilities for claims and claim adjustment expenses, net of recoverables	1,010
Service Businesses
Increase (decrease) in claims and claims expense
Liabilities for claims and claim adjustment expenses, net of recoverables	36
Discontinued Lines and Coverages
Increase (decrease) in claims and claims expense
Liabilities for claims and claim adjustment expenses, net of recoverables	1,286
Other \| Auto insurance - liability coverage
Increase (decrease) in claims and claims expense
Prior Year Reserve Estimates	(1)
Other \| Auto insurance - physical damage coverage
Increase (decrease) in claims and claims expense
Prior Year Reserve Estimates	0
Other \| Homeowners
Increase (decrease) in claims and claims expense
Prior Year Reserve Estimates	$ 0

Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2019

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

Other comprehensive income (loss) on a pre-tax and after-tax basis



Components of other comprehensive income (loss) on a pre-tax and after-tax basis
	For the years ended December 31,
($ in millions)	2019									2018								2017
	Pre-tax			Tax			After-tax			Pre-tax			Tax		After-tax			Pre-tax			Tax			After-tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$	2,807		$	(592	)	$	2,215		$	(1,142	)	$	241	$	(901	)	$	866		$	(304	)	$	562
Less: reclassification adjustment of realized capital gains and losses	413			(87		)	326			(186		)	39		(147		)	374			(131		)	243
Unrealized net capital gains and losses	2,394			(505		)	1,889			(956		)	202		(754		)	492			(173		)	319
Unrealized foreign currency translation adjustments	(13		)	3			(10		)	(61		)	13		(48		)	69			(24		)	45
Unamortized pension and other postretirement prior service credit	(59		)	12			(47		)	(77		)	18		(59		)	(80		)	28			(52		)
Other comprehensive income (loss)	$	2,322		$	(490	)	$	1,832		$	(1,094	)	$	233	$	(861	)	$	481		$	(169	)	$	312

Supplemental Cash Flow Information - Net change (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Net change in proceeds managed
Net change in fixed income securities	$ 80	$ 234	$ 259
Net change in short-term investments	(451)	(568)	(255)
Operating cash flow (used) provided	(371)	(334)	4
Net change in cash	0	0	1
Net change in proceeds managed	(371)	(334)	5
Net change in liabilities
Liabilities for collateral, beginning of year	(1,458)	(1,124)	(1,129)
Liabilities for collateral, end of year	(1,829)	(1,458)	(1,124)
Operating cash flow provided (used)	$ 371	$ 334	$ (5)

Investments (Tables)

12 Months Ended

Dec. 31, 2019

Investments [Abstract]

Schedule of amortized cost, gross unrealized gains (losses) and fair value for fixed income securities



Amortized cost, gross unrealized gains (losses) and fair value for fixed income securities
	Amortized cost		Gross unrealized					Fair value
($ in millions)	Amortized cost		Gains		Losses			Fair value
December 31, 2019
U.S. government and agencies	$	4,971	$	141	$	(26	)	$	5,086
Municipal	8,080		551		(11		)	8,620
Corporate	41,090		2,035		(47		)	43,078
Foreign government	968		16		(5		)	979
ABS	860		8		(6		)	862
MBS	324		96		(1		)	419
Total fixed income securities	$	56,293	$	2,847	$	(96	)	$	59,044

December 31, 2018
U.S. government and agencies	$	5,386	$	137	$	(6	)	$	5,517
Municipal	8,963		249		(43		)	9,169
Corporate	40,557		491		(890		)	40,158
Foreign government	739		13		(5		)	747
ABS	1,049		6		(10		)	1,045
MBS	440		97		(3		)	534
Total fixed income securities	$	57,134	$	993	$	(957	)	$	57,170

Schedule for fixed income securities based on contractual maturities



Scheduled maturities for fixed income securities
	As of December 31, 2019
($ in millions)	Amortized cost		Fair value
Due in one year or less	$	3,214	$	3,239
Due after one year through five years	24,108		24,781
Due after five years through ten years	18,194		19,177
Due after ten years	9,593		10,566
	55,109		57,763
ABS and MBS	1,184		1,281
Total	$	56,293	$	59,044

Schedule of realized capital gains and losses by asset type



Realized capital gains (losses) by asset type
	For the years ended December 31,
($ in millions)	2019			2018			2017
Fixed income securities	$	461		$	(237	)	$	94
Equity securities	1,210			(594		)	255
Mortgage loans	—			2			1
Limited partnership interests	200			(101		)	132
Derivatives	(15		)	46			(46		)
Other	29			7			9
Realized capital gains and losses	$	1,885		$	(877	)	$	445

Schedule of realized capital gains and losses by transaction type



Realized capital gains (losses) by transaction type
	For the years ended December 31,
($ in millions)	2019			2018			2017
Impairment write-downs	$	(47	)	$	(14	)	$	(102	)
Change in intent write-downs	—			—			(48		)
Net OTTI losses recognized in earnings	(47		)	(14		)	(150		)
Sales	575			(215		)	641
Valuation of equity investments ⁽¹⁾	1,372			(691		)	—
Valuation and settlements of derivative instruments	(15		)	43			(46		)
Realized capital gains and losses	$	1,885		$	(877	)	$	445

⁽¹⁾

Includes valuation of equity securities and certain limited partnership interests where the underlying assets are predominately public equity securities.

Realized gain (loss) on investments



Net appreciation (decline) recognized in net income
	For the years ended December 31,
($ in millions)	2019		2018
Equity securities	$	1,073	$	(261	)
Limited partnership interests carried at fair value	149		249
Total	$	1,222	$	(12	)



Net investment income
	For the years ended December 31,
($ in millions)	2019			2018			2017
Fixed income securities	$	2,175		$	2,077		$	2,078
Equity securities	206			170			174
Mortgage loans	220			217			206
Limited partnership interests	471			705			889
Short-term investments	102			73			30
Other	262			272			236
Investment income, before expense	3,436			3,514			3,613
Investment expense	(277		)	(274		)	(212		)
Net investment income	$	3,159		$	3,240		$	3,401

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



OTTI losses by asset type
	For the years ended December 31,
($ in millions)	2019									2018									2017
	Gross			Included in OCI			Net			Gross			Included in OCI			Net			Gross			Included in OCI			Net
Fixed income securities:
Municipal	$	(2	)	$	2		$	—		$	—		$	—		$	—		$	(1	)	$	(3	)	$	(4	)
Corporate	(5		)	(2		)	(7		)	(4		)	2			(2		)	(9		)	3			(6		)
ABS	(4		)	—			(4		)	(1		)	(2		)	(3		)	(1		)	(2		)	(3		)
MBS	(4		)	1			(3		)	(4		)	(1		)	(5		)	(11		)	(2		)	(13		)
Total fixed income securities	(15		)	1			(14		)	(9		)	(1		)	(10		)	(22		)	(4		)	(26		)
Equity securities	—			—			—			—			—			—			(86		)	—			(86		)
Mortgage loans	—			—			—			—			—			—			(1		)	—			(1		)
Limited partnership interests	(6		)	—			(6		)	(3		)	—			(3		)	(32		)	—			(32		)
Other	(27		)	—			(27		)	(1		)	—			(1		)	(5		)	—			(5		)
OTTI losses	$	(48	)	$	1		$	(47	)	$	(13	)	$	(1	)	$	(14	)	$	(146	)	$	(4	)	$	(150	)

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



OTTI losses included in AOCI at the time of impairment for fixed income securities which were not included in earnings ⁽¹⁾
	As of December 31,
($ in millions)	2019			2018
Municipal	$	(7	)	$	(5	)
Corporate	—			(2		)
ABS	(10		)	(10		)
MBS	(56		)	(69		)
Total	$	(73	)	$	(86	)

⁽¹⁾

The amounts exclude $161 million and $180 million as of December 31, 2019 and 2018, respectively, of net unrealized gains related to changes in valuation of the fixed income securities subsequent to the impairment measurement date.

Schedule of credit losses on fixed income securities recognized in earnings



Rollforward of the cumulative credit losses recognized in earnings for fixed income securities held
	As of December 31,
($ in millions)	2019			2018			2017
Beginning balance	$	(204	)	$	(226	)	$	(318	)
Additional credit loss for securities previously other-than-temporarily impaired	(10		)	(7		)	(18		)
Additional credit loss for securities not previously other-than-temporarily impaired	(4		)	(3		)	(8		)
Reduction in credit loss for securities disposed or collected	32			30			116
Change in credit loss due to accretion of increase in cash flows	—			2			2
Ending balance	$	(186	)	$	(204	)	$	(226	)

Schedule of unrealized net capital gains and losses



Unrealized net capital gains and losses included in AOCI
($ in millions)	Fair value		Gross unrealized					Unrealized net gains (losses)
December 31, 2019			Gains		Losses
Fixed income securities	$	59,044	$	2,847	$	(96	)	$	2,751
Short-term investments	4,256		—		—			—
Derivative instruments	—		—		(3		)	(3		)
EMA limited partnerships ⁽¹⁾								(4		)
Unrealized net capital gains and losses, pre-tax								2,744
Amounts recognized for:
Insurance reserves ⁽²⁾								(126		)
DAC and DSI ⁽³⁾								(224		)
Amounts recognized								(350		)
Deferred income taxes								(507		)
Unrealized net capital gains and losses, after-tax								$	1,887

December 31, 2018
Fixed income securities	$	57,170	$	993	$	(957	)	$	36
Short-term investments	3,027		—		—			—
Derivative instruments	—		—		(3		)	(3		)
EMA limited partnerships								—
Unrealized net capital gains and losses, pre-tax								33
Amounts recognized for:
Insurance reserves								—
DAC and DSI								(33		)
Amounts recognized								(33		)
Deferred income taxes								(2		)
Unrealized net capital gains and losses, after-tax								$	(2	)


⁽¹⁾	Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of EMA limited partnerships’ OCI. Fair value and gross unrealized gains and losses are not applicable.


⁽²⁾	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 lower interest rates, resulting in a premium deficiency. This adjustment primarily relates to structured settlement annuities with life contingencies (a type of immediate fixed annuities).


⁽³⁾	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.



Change in unrealized net capital gains (losses)
	For the years ended December 31,
($ in millions)	2019			2018			2017
Fixed income securities	$	2,715		$	(1,431	)	$	204
Equity securities ⁽¹⁾	—			—			651
Derivative instruments	—			(2		)	(3		)
EMA limited partnerships	(4		)	(1		)	5
Total	2,711			(1,434		)	857
Amounts recognized for:
Insurance reserves	(126		)	315			(315		)
DAC and DSI	(191		)	163			(50		)
Amounts recognized	(317		)	478			(365		)
Deferred income taxes	(505		)	202			117
Increase (decrease) in unrealized net capital gains and losses, after-tax	$	1,889		$	(754	)	$	609

Schedule of change in unrealized net capital gains and losses



Change in unrealized net capital gains (losses)
	For the years ended December 31,
($ in millions)	2019			2018			2017
Fixed income securities	$	2,715		$	(1,431	)	$	204
Equity securities ⁽¹⁾	—			—			651
Derivative instruments	—			(2		)	(3		)
EMA limited partnerships	(4		)	(1		)	5
Total	2,711			(1,434		)	857
Amounts recognized for:
Insurance reserves	(126		)	315			(315		)
DAC and DSI	(191		)	163			(50		)
Amounts recognized	(317		)	478			(365		)
Deferred income taxes	(505		)	202			117
Increase (decrease) in unrealized net capital gains and losses, after-tax	$	1,889		$	(754	)	$	609


⁽¹⁾	Upon adoption of the recognition and measurement accounting standard on January 1, 2018, $1.16 billion of pre-tax unrealized net capital gains for equity securities were reclassified from AOCI to retained income.

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



Gross unrealized losses and fair value by type and length of time held in a continuous unrealized loss position
	Less than 12 months						12 months or more
($ in millions)	Number of issues	Fair value		Unrealized losses			Number of issues	Fair value		Unrealized losses			Total unrealized losses
December 31, 2019
Fixed income securities
U.S. government and agencies	31	$	1,713	$	(26	)	10	$	26	$	—		$	(26	)
Municipal	307	576		(9		)	1	14		(2		)	(11		)
Corporate	186	1,392		(20		)	65	485		(27		)	(47		)
Foreign government	55	412		(4		)	6	102		(1		)	(5		)
ABS	36	193		(2		)	23	160		(4		)	(6		)
MBS	27	15		—			123	14		(1		)	(1		)
Total fixed income securities	642	$	4,301	$	(61	)	228	$	801	$	(35	)	$	(96	)
Investment grade fixed income securities	581	$	3,878	$	(41	)	185	$	594	$	(20	)	$	(61	)
Below investment grade fixed income securities	61	423		(20		)	43	207		(15		)	(35		)
Total fixed income securities	642	$	4,301	$	(61	)	228	$	801	$	(35	)	$	(96	)

December 31, 2018
Fixed income securities
U.S. government and agencies	11	$	55	$	—		38	$	364	$	(6	)	$	(6	)
Municipal	943	1,633		(10		)	1,147	1,554		(33		)	(43		)
Corporate	1,736	19,243		(543		)	645	8,374		(347		)	(890		)
Foreign government	7	20		(1		)	27	412		(4		)	(5		)
ABS	64	454		(5		)	28	161		(5		)	(10		)
MBS	169	37		—			197	52		(3		)	(3		)
Total fixed income securities	2,930	$	21,442	$	(559	)	2,082	$	10,917	$	(398	)	$	(957	)
Investment grade fixed income securities	2,348	$	17,485	$	(331	)	2,021	$	10,626	$	(360	)	$	(691	)
Below investment grade fixed income securities	582	3,957		(228		)	61	291		(38		)	(266		)
Total fixed income securities	2,930	$	21,442	$	(559	)	2,082	$	10,917	$	(398	)	$	(957	)



Gross unrealized losses by unrealized loss position and credit quality as of December 31, 2019
($ in millions)	Investment grade			Below investment grade			Total
Fixed income securities with unrealized loss position less than 20% of amortized cost ^{(1) (2)}	$	(48	)	$	(27	)	$	(75	)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost^{(3) (4)}	(13		)	(8		)	(21		)
Total unrealized losses	$	(61	)	$	(35	)	$	(96	)


⁽¹⁾	Below investment grade fixed income securities include $14 million that have been in an unrealized loss position for less than twelve months.


⁽²⁾	Related to securities with an unrealized loss position less than 20% of amortized cost, the degree of which suggests that these securities do not pose a high risk of being other-than-temporarily impaired.


⁽³⁾	No below investment grade fixed income securities have been in an unrealized loss position for a period of twelve or more consecutive months.

⁽⁴⁾

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.

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



Principal geographic distribution of commercial real estate exceeding 5% of the mortgage loans portfolio
	As of December 31,
(% of mortgage loan portfolio carrying value)	2019		2018
Texas	16.9	%	14.9	%
California	15.1		16.4
Illinois	7.1		7.8
Florida	6.4		6.1
New Jersey	5.6		6.8
North Carolina	4.5		5.1

Types of property collateralizing the mortgage loans



Types of properties collateralizing the mortgage loan portfolio
	As of December 31,
(% of mortgage loan portfolio carrying value)	2019		2018
Apartment complex	36.8	%	34.4	%
Office buildings	22.6		24.5
Warehouse	16.8		15.8
Retail	13.4		14.4
Other	10.4		10.9
Total	100.0	%	100.0	%

Contractual maturities of the commercial mortgage loan portfolio



Contractual maturities of the mortgage loan portfolio
	As of December 31, 2019
($ in millions)	Number of loans	Carrying value		Percent
2020	9	$	58	1.2	%
2021	36	446		9.3
2022	28	460		9.5
2023	52	776		16.1
Thereafter	161	3,077		63.9
Total	286	$	4,817	100.0	%

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



Carrying value of non-impaired mortgage loans summarized by debt service coverage ratio distribution
	As of December 31,
($ in millions)	2019						2018
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	$	13	$	32	$	45	$	6	$	31	$	37
1.0 - 1.25	225		—		225		273		—		273
1.26 - 1.50	1,219		18		1,237		1,192		—		1,192
Above 1.50	3,264		38		3,302		3,063		101		3,164
Total non-impaired mortgage loans	$	4,721	$	88	$	4,809	$	4,534	$	132	$	4,666

Net carrying value of impaired mortgage loans



Net carrying value of impaired mortgage loans
	As of December 31,
($ in millions)	2019		2018
Impaired mortgage loans with a valuation allowance	$	8	$	4
Impaired mortgage loans without a valuation allowance	—		—
Total impaired mortgage loans	$	8	$	4
Valuation allowance on impaired mortgage loans	$	3	$	3

Valuation allowance on impaired mortgage loans



Rollforward of the valuation allowance on impaired mortgage loans
	For the years ended December 31,
($ in millions)	2019		2018		2017
Beginning balance	$	3	$	3	$	3
Net increase in valuation allowance	—		—		1
Charge offs	—		—		(1		)
Ending balance	$	3	$	3	$	3

Principal geographic distribution of municipal bond



Principal geographic distribution of municipal bond issuers exceeding 5% of the portfolio
	As of December 31,
(% of municipal bond portfolio carrying value)	2019		2018
Texas	12.7	%	12.3	%
California	8.6		7.4
Colorado	5.8		4.0
Washington	5.5		6.2
New York	3.7		5.6

Schedule of other investments, by type



Other investments by asset type
($ in millions)	December 31, 2019		December 31, 2018
Bank loans	$	1,204	$	1,350
Real estate	1,005		791
Policy loans	894		891
Agent loans	666		620
Derivatives and other	236		200
Total	$	4,005	$	3,852

Deferred Policy Acquisition and Sales Inducement Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Deferred policy acquisition costs activity
Balance, beginning of year	$ 4,784	$ 4,191	$ 3,954
SquareTrade acquisition	0	0	66
Acquisition costs deferred	5,622	5,663	5,001
Amortization charged to income	(5,533)	(5,222)	(4,784)
Effect of unrealized gains and losses	(174)	152	(46)
Balance, end of year	4,699	4,784	4,191
Deferred sales inducement costs activity
Balance, beginning of year	34	36	40
Amortization charged to income	(5)	(4)	(4)
Effect of unrealized gains and losses	(2)	2	0
Balance, end of year	$ 27	$ 34	$ 36

Derivative Financial Instruments and Off-balance sheet Financial Instruments - Gross and net amounts for OTC derivatives (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Asset derivatives
Gross amount	$ 142	$ 130
Derivative asset, fair value, gross liability	0	(6)
Net amount on balance sheet	142	124
Liability derivatives
Gross amount	(546)	(281)
Liability derivatives, Gross asset	39	12
Net amount on balance sheet	(507)	(269)
OTC derivatives
Asset derivatives
Gross amount	40	25
Derivative asset, fair value, gross liability	(39)	(18)
Derivative asset, cash collateral (received) pledged	(1)	(5)
Net amount on balance sheet	0	2
Securities collateral (received) pledged	0	0
Net amount	0	2
Liability derivatives
Gross amount	(16)	(12)
Liability derivatives, Gross asset	39	18
Derivative liability offsets under cash collateral pledged	(27)	(12)
Net amount on balance sheet	(4)	(6)
Securities collateral (received) pledged	0	0
Net amount	$ (4)	$ (6)

Schedule II - Condensed Financial Information of Registrant - Statement of Operations (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues
Net investment income									$ 3,159	$ 3,240	$ 3,401
Realized capital gains and losses									1,885	(877)	445
Total revenues	$ 11,472	$ 11,069	$ 11,144	$ 10,990	$ 9,481	$ 10,465	$ 10,099	$ 9,770	44,675	39,815	39,407
Expenses
Interest expense									327	332	335
Other operating expenses									5,690	5,594	5,196
Total costs and expenses									38,592	37,193	34,878
Income tax expense (benefit)									1,242	468	995
Net income									4,847	2,160	3,554
Preferred stock dividends									169	148	116
Net income applicable to common shareholders	$ 1,707	$ 889	$ 821	$ 1,261	$ (585)	$ 942	$ 678	$ 977	4,678	2,012	3,438
Other comprehensive income (loss), after-tax
Unrealized net capital gains and losses									1,889	(754)	319
Unrealized foreign currency translation adjustments									(10)	(48)	45
Unamortized pension and other postretirement prior service credit									(47)	(59)	(52)
Other comprehensive income (loss), after-tax									1,832	(861)	312
Comprehensive income									6,679	1,299	3,866
Allstate Corporation
Revenues
Net investment income									35	25	10
Realized capital gains and losses									9	(10)	(2)
Other income									41	3	36
Total revenues									85	18	44
Expenses
Interest expense									355	337	334
Pension and other postretirement remeasurement gains and losses									103	454	(219)
Pension and other postretirement benefit expense									(122)	(116)	(224)
Other operating expenses									49	50	50
Total costs and expenses									385	725	(59)
(Loss) gain from operations before income tax benefit and equity in net income of subsidiaries									(300)	(707)	103
Income tax expense (benefit)									(75)	(136)	105
Loss before equity in net income of subsidiaries									(225)	(571)	(2)
Equity in net income of subsidiaries									5,072	2,731	3,556
Net income									4,847	2,160	3,554
Preferred stock dividends									169	148	116
Net income applicable to common shareholders									4,678	2,012	3,438
Other comprehensive income (loss), after-tax
Unrealized net capital gains and losses									1,889	(754)	319
Unrealized foreign currency translation adjustments									(10)	(48)	45
Unamortized pension and other postretirement prior service credit									(47)	(59)	(52)
Other comprehensive income (loss), after-tax									1,832	(861)	312
Comprehensive income									$ 6,679	$ 1,299	$ 3,866

Schedule IV - Reinsurance

12 Months Ended

Dec. 31, 2019

SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract]

Schedule IV — Reinsurance



($ in millions)	Gross amount		Ceded to other companies ⁽¹⁾		Assumed from other companies		Net amount		Percentage of amount assumed to net
Year ended December 31, 2019
Life insurance in force	$	219,785	$	74,021	$	229,419	$	375,183	61.1	%
Premiums and contract charges:
Life insurance	$	1,062	$	262	$	712	$	1,512	47.1	%
Accident and health insurance	1,012		23		—		989		—	%
Property and casualty insurance	37,104		1,122		94		36,076		0.3	%
Total premiums and contract charges	$	39,178	$	1,407	$	806	$	38,577	2.1	%
Year ended December 31, 2018
Life insurance in force	$	207,434	$	81,186	$	243,161	$	369,409	65.8	%
Premiums and contract charges:
Life insurance	$	994	$	266	$	754	$	1,482	50.9	%
Accident and health insurance	1,007		24		—		983		—	%
Property and casualty insurance	34,977		1,016		87		34,048		0.3	%
Total premiums and contract charges	$	36,978	$	1,306	$	841	$	36,513	2.3	%
Year ended December 31, 2017
Life insurance in force	$	188,186	$	86,642	$	259,671	$	361,215	71.9	%
Premiums and contract charges:
Life insurance	$	936	$	276	$	787	$	1,447	54.4	%
Accident and health insurance	958		27		—		931		—	%
Property and casualty insurance	33,221		971		50		32,300		0.2	%
Total premiums and contract charges	$	35,115	$	1,274	$	837	$	34,678	2.4	%

⁽¹⁾

No reinsurance or coinsurance income was netted against premium ceded in 2019, 2018 or 2017.

Derivative Financial Instruments and Off-balance sheet Financial Instruments - OTC derivatives counterparty credit exposure (Details) $ in Millions	Dec. 31, 2019 USD ($) counter-party	Dec. 31, 2018 USD ($) counter-party
Credit Derivatives
Number of counter-parties \| counter-party	6	5
Notional amount	$ 868	$ 764
Credit exposure	29	20
Exposure, net of collateral	0	1
Gross liability fair value of contracts containing credit-risk-contingent features	16	11
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(11)	(5)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	(3)	(2)
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$ 2	$ 4
A plus
Credit Derivatives
Number of counter-parties \| counter-party	6	3
Notional amount	$ 868	$ 643
Credit exposure	29	19
Exposure, net of collateral	$ 0	$ 1
A
Credit Derivatives
Number of counter-parties \| counter-party	0	2
Notional amount	$ 0	$ 121
Credit exposure	0	1
Exposure, net of collateral	$ 0	$ 0

Investments - OTTI losses included in AOCI at the time of impairment for fixed income securities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Investments [Abstract]
Net unrealized gains related to changes in valuation of fixed income securities subsequent to impairment measurement date	$ 161	$ 180
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	(73)	(86)
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	(7)	(5)
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	0	(2)
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	(10)	(10)
MBS
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	$ (56)	$ (69)

Company Restructuring - Changes in the restructuring liability (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Restructuring Reserve
Restructuring liability as of December 31, 2018	$ 44
Expense incurred	50
Adjustments to liability	(9)
Payments and non-cash pension settlements	(63)
Restructuring liability as of December 31, 2019	22
Employee costs
Restructuring Reserve
Restructuring liability as of December 31, 2018	29
Expense incurred	43
Adjustments to liability	(9)
Payments and non-cash pension settlements	(49)
Restructuring liability as of December 31, 2019	14
Exit costs
Restructuring Reserve
Restructuring liability as of December 31, 2018	15
Expense incurred	7
Adjustments to liability	0
Payments and non-cash pension settlements	(14)
Restructuring liability as of December 31, 2019	$ 8

Equity Incentive Plans - Summary of option activity (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stock option activity
Outstanding at the beginning of the period (in shares)	11,730
Granted (in shares)	2,802
Exercised (in shares)	(2,622)
Forfeited (in shares)	(235)
Expired (in shares)	(4)
Outstanding at the end of the period (in shares)	11,671	11,730
Outstanding, net of expected forfeitures (in shares)	11,547
Outstanding, exercisable ("vested") (in shares)	6,744
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding at the beginning of the period (in dollars per share)	$ 65.82
Granted (in dollars per share)	92.66
Exercised (in dollars per share)	58.70
Forfeited (in dollars per share)	89.20
Expired (in dollars per share)	31.78
Outstanding at the end of the period (in dollars per share)	73.40	$ 65.82
Outstanding, net of expected forfeitures (in dollars per share)	73.20
Outstanding, exercisable ("vested") (in dollars per share)	$ 60.81
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Aggregate intrinsic value, Outstanding	$ 455,691
Aggregate intrinsic value, net of expected forfeitures, outstanding	453,268
Aggregate intrinsic value, exercisable ("vested"), outstanding	$ 348,285
Weighted average remaining contractual term, Outstanding	6 years 3 months 18 days
Weighted average remaining contractual term, net of expected forfeitures, outstanding	6 years 3 months 18 days
Weighted average remaining contractual term, exercisable ("vested"), outstanding	4 years 9 months 18 days
Weighted average grant date fair value of options granted (in dollars per share)	$ 14.96	$ 17.03	$ 14.60
Intrinsic value of options exercised	$ 114,000	$ 72,000	$ 199,000

Benefit Plans - Cash flows narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Pension benefits
Components of net periodic cost
Defined benefit pension plans, estimated employer contributions in next fiscal year	$ 25,000,000
Employer contribution	27,000,000	$ 16,000,000
Postretirement benefits
Components of net periodic cost
Defined benefit pension plans, estimated employer contributions in next fiscal year	0
Employer contribution	24,000,000	22,000,000
Participant contributions	15,000,000	$ 13,000,000
Other Pension Plan
Components of net periodic cost
Defined benefit pension plans, estimated employer contributions in next fiscal year	$ 4,000,000

Reinsurance and Indemnification - Life and annuity reinsurance recoverables (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) reinsurer
Reinsurance Retention Policy [Line Items]
Reinsurance recoverables \| $	$ 70
Allstate Annuities
Reinsurance Retention Policy [Line Items]
Percent of morbidity risk ceded for term-life insurance policies	90.00%
Number of unaffiliated reinsurers \| reinsurer	14

Capital Structure - Debt maturities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Total debt outstanding by maturity:
2020	$ 0
2021	250
2022	0
2023	750
2024	0
Thereafter	5,691
Total long-term debt principal	$ 6,691	$ 6,508

Derivative Financial Instruments and Off-balance sheet Financial Instruments - Summary of the volume and fair value positions (Details) $ in Millions	Dec. 31, 2019 USD ($) contract	Dec. 31, 2018 USD ($) contract
Derivatives, Fair Value
Total asset derivatives, Notional amount	$ 75	$ 470
Total liability derivatives, Notional amount	3,403	2,675
Total derivatives, Notional amount	$ 3,478	$ 3,145
Total asset derivatives, Number of contracts \| contract	10,740	13,914
Total liability derivatives, Number of contracts \| contract	6,492	12,256
Total derivatives, Number of contracts \| contract	17,232	26,170
Net amount on balance sheet	$ 142	$ 124
Asset derivatives, Gross asset	142	130
Asset derivatives, gross liability	0	(6)
Net amount on balance sheet	(507)	(269)
Total derivatives, Fair value, net	(365)	(145)
Liability derivatives, Gross asset	39	12
Liability derivatives, Gross liability	(546)	(281)
Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	$ 73
Total asset derivatives, Number of contracts \| contract	10,740
Net amount on balance sheet	$ 142
Asset derivatives, Gross asset	142
Asset derivatives, gross liability	0
Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount		$ 0
Total liability derivatives, Number of contracts \| contract		1,300
Net amount on balance sheet		$ (1)
Liability derivatives, Gross asset		0
Liability derivatives, Gross liability		(1)
Other \| Other assets \| Derivatives designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	2
Net amount on balance sheet	0
Asset derivatives, Gross asset	0
Asset derivatives, gross liability	0
Other \| Other assets \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount		2
Net amount on balance sheet		0
Asset derivatives, Gross asset		0
Asset derivatives, gross liability		0
Interest rate cap agreements \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount		6
Net amount on balance sheet		0
Asset derivatives, Gross asset		0
Asset derivatives, gross liability		0
Interest rate cap agreements \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	34	31
Net amount on balance sheet	0	1
Liability derivatives, Gross asset	0	1
Liability derivatives, Gross liability	0	0
Futures \| 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	3,668	1,330
Net amount on balance sheet	$ 0	$ 1
Asset derivatives, Gross asset	0	1
Asset derivatives, gross liability	0	0
Futures \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	$ 0
Total liability derivatives, Number of contracts \| contract	1,089
Net amount on balance sheet	$ 0
Liability derivatives, Gross asset	0
Liability derivatives, Gross liability	0
Options \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	$ 0	$ 0
Total asset derivatives, Number of contracts \| contract	5,539	11,131
Net amount on balance sheet	$ 140	$ 115
Asset derivatives, Gross asset	140	115
Asset derivatives, gross liability	0	0
Futures \| 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	1,533	1,453
Net amount on balance sheet	$ 1	$ 1
Asset derivatives, Gross asset	1	1
Asset derivatives, gross liability	0	0
Futures \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	$ 0
Total liability derivatives, Number of contracts \| contract	3
Net amount on balance sheet	$ 0
Liability derivatives, Gross asset	0
Liability derivatives, Gross liability	0
Total return swap agreements - fixed income \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	56	7
Total liability derivatives, Notional amount	119	38
Net amount on balance sheet	1	0
Asset derivatives, Gross asset	1	0
Asset derivatives, gross liability	0	0
Net amount on balance sheet	0	(1)
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	0	(1)
Total return swap agreements - equity index \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount		61
Total liability derivatives, Notional amount	187	71
Net amount on balance sheet		(2)
Asset derivatives, Gross asset		0
Asset derivatives, gross liability		(2)
Net amount on balance sheet	11	(4)
Liability derivatives, Gross asset	11	0
Liability derivatives, Gross liability	0	(4)
Options and futures \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	$ 0	$ 0
Total liability derivatives, Number of contracts \| contract	5,400	10,956
Net amount on balance sheet	$ (68)	$ (50)
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	(68)	(50)
Foreign currency forwards \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount		258
Net amount on balance sheet		10
Asset derivatives, Gross asset		11
Asset derivatives, gross liability		(1)
Foreign currency forwards \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	745	341
Net amount on balance sheet	19	10
Liability derivatives, Gross asset	28	11
Liability derivatives, Gross liability	(9)	(1)
Guaranteed accumulation benefits \| Contractholder funds \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	161	169
Net amount on balance sheet	(18)	(25)
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	(18)	(25)
Guaranteed withdrawal benefits \| Contractholder funds \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	205	210
Net amount on balance sheet	(14)	(14)
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	(14)	(14)
Equity-indexed and forward starting options in life and annuity product contracts \| Contractholder funds \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	1,791	1,770
Net amount on balance sheet	(430)	(185)
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	(430)	(185)
Credit default swaps – buying protection \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	17	136
Net amount on balance sheet	0	(1)
Asset derivatives, Gross asset	0	2
Asset derivatives, gross liability	0	(3)
Credit default swaps – buying protection \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	152	40
Net amount on balance sheet	(7)	0
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	(7)	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	9	5
Net amount on balance sheet	0	0
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	$ 0	$ 0

Fair Value of Assets and Liabilities - Carrying values and fair value estimates (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Financial assets
Mortgage loans	$ 4,817	$ 4,670
Financial liabilities
Long-term debt	6,631	6,451
Liability for collateral	1,829	1,458	$ 1,124	$ 1,129
Significant unobservable inputs (Level 3) \| Carrying value
Financial assets
Mortgage loans	4,817	4,670
Bank loans	1,204	1,350
Agent loans	666	620
Financial liabilities
Contractholder funds on investment contracts	8,438	9,250
Significant unobservable inputs (Level 3) \| Fair value
Financial assets
Mortgage loans	5,012	4,703
Bank loans	1,185	1,298
Agent loans	664	617
Financial liabilities
Contractholder funds on investment contracts	9,158	9,665
Significant other observable inputs (Level 2) \| Carrying value
Financial liabilities
Long-term debt	6,631	6,451
Liability for collateral	1,829	1,458
Significant other observable inputs (Level 2) \| Fair value
Financial liabilities
Long-term debt	7,738	6,708
Liability for collateral	$ 1,829	$ 1,458

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

12 Months Ended

Dec. 31, 2019

Derivative Financial Instruments and Off-balance sheet Financial Instruments

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



Summary of the volume and fair value positions of derivative instruments as of December 31, 2019
		Volume ⁽¹⁾
($ in millions, except number of contracts)	Balance sheet location	Notional amount		Number of contracts	Fair value, net			Gross asset		Gross liability
Asset derivatives
Derivatives designated as fair value accounting hedging instruments
Other	Other assets	$	2	n/a	$	—		$	—	$	—
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Futures	Other assets	—		3,668	—			—		—
Equity and index contracts
Options	Other investments	—		5,539	140			140		—
Futures	Other assets	—		1,533	1			1		—
Total return index contracts
Total return swap agreements - fixed income	Other investments	56		n/a	1			1		—
Credit default contracts
Credit default swaps – buying protection	Other investments	17		n/a	—			—		—
Subtotal		73		10,740	142			142		—
Total asset derivatives		$	75	10,740	$	142		$	142	$	—

Liability derivatives
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other liabilities & accrued expenses	$	34	n/a	$	—		$	—	$	—
Futures	Other liabilities & accrued expenses	—		1,089	—			—		—
Equity and index contracts
Options	Other liabilities & accrued expenses	—		5,400	(68		)	—		(68		)
Futures	Other liabilities & accrued expenses	—		3	—			—		—
Total return index contracts
Total return swap agreements - fixed income	Other liabilities & accrued expenses	119		n/a	—			—		—
Total return swap agreements - equity index	Other liabilities & accrued expenses	187		n/a	11			11		—
Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	745		n/a	19			28		(9		)
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds	161		n/a	(18		)	—		(18		)
Guaranteed withdrawal benefits	Contractholder funds	205		n/a	(14		)	—		(14		)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds	1,791		n/a	(430		)	—		(430		)
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	152		n/a	(7		)	—		(7		)
Credit default swaps – selling protection	Other liabilities & accrued expenses	9		n/a	—			—		—
Total liability derivatives		3,403		6,492	(507		)	$	39	$	(546	)
Total derivatives		$	3,478	17,232	$	(365	)


⁽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)



Summary of the volume and fair value positions of derivative instruments as of December 31, 2018
		Volume
($ in millions, except number of contracts)	Balance sheet location	Notional amount		Number of contracts	Fair value, net			Gross asset		Gross liability
Asset derivatives
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other investments	$	6	n/a	$	—		$	—	$	—
Futures	Other assets	—		1,330	1			1		—
Equity and index contracts
Options	Other investments	—		11,131	115			115		—
Futures	Other assets	—		1,453	1			1		—
Total return index contracts
Total return swap agreements - fixed income	Other investments	7		n/a	—			—		—
Total return swap agreements - equity index	Other investments	61		n/a	(2		)	—		(2		)
Foreign currency contracts
Foreign currency forwards	Other investments	258		n/a	10			11		(1		)
Credit default contracts
Credit default swaps – buying protection	Other investments	136		n/a	(1		)	2		(3		)
Other contracts
Other	Other assets	2		n/a	—			—		—
Total asset derivatives		$	470	13,914	$	124		$	130	$	(6	)

Liability derivatives
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other liabilities & accrued expenses	$	31	n/a	$	1		$	1	$	—
Futures	Other liabilities & accrued expenses	—		1,300	(1		)	—		(1		)
Equity and index contracts
Options and futures	Other liabilities & accrued expenses	—		10,956	(50		)	—		(50		)
Total return index contracts
Total return swap agreements - fixed income	Other liabilities & accrued expenses	38		n/a	(1		)	—		(1		)
Total return swap agreements - equity index	Other liabilities & accrued expenses	71		n/a	(4		)	—		(4		)
Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	341		n/a	10			11		(1		)
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds	169		n/a	(25		)	—		(25		)
Guaranteed withdrawal benefits	Contractholder funds	210		n/a	(14		)	—		(14		)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds	1,770		n/a	(185		)	—		(185		)
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	40		n/a	—			—		—
Credit default swaps – selling protection	Other liabilities & accrued expenses	5		n/a	—			—		—
Total liability derivatives		2,675		12,256	(269		)	$	12	$	(281	)
Total derivatives		$	3,145	26,170	$	(145	)

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



Gross and net amounts for OTC derivatives ⁽¹⁾
				Offsets
($ in millions)	Gross amount			Counter- party netting			Cash collateral (received) pledged			Net amount on balance sheet			Securities collateral (received) pledged		Net amount
December 31, 2019
Asset derivatives	$	40		$	(39	)	$	(1	)	$	—		$	—	$	—
Liability derivatives	(16		)	39			(27		)	(4		)	—		(4		)

December 31, 2018
Asset derivatives	$	25		$	(18	)	$	(5	)	$	2		$	—	$	2
Liability derivatives	(12		)	18			(12		)	(6		)	—		(6		)

⁽¹⁾

All OTC derivatives are subject to enforceable master netting agreements.

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



Gains (losses) from valuation and settlements reported on derivatives not designated as accounting hedges
($ in millions)	Realized capital gains (losses)			Life contract benefits			Interest credited to contractholder funds			Operating costs and expenses			Total gain (loss) recognized in net income on derivatives
2019
Interest rate contracts	$	51		$	—		$	—		$	—		$	51
Equity and index contracts	(116		)	—			63			40			(13		)
Embedded derivative financial instruments	—			7			(70		)	—			(63		)
Foreign currency contracts	8			—			—			—			8
Credit default contracts	(8		)	—			—			—			(8		)
Total return swaps - fixed income	14			—			—			—			14
Total return swaps - equity index	36			—			—			—			36
Total	$	(15	)	$	7		$	(7	)	$	40		$	25

2018
Interest rate contracts	$	(2	)	$	—		$	—		$	—		$	(2	)
Equity and index contracts	21			—			(24		)	(21		)	(24		)
Embedded derivative financial instruments	—			(5		)	67			—			62
Foreign currency contracts	29			—			—			(1		)	28
Credit default contracts	2			—			—			—			2
Total return swaps - fixed income	(1		)	—			—			—			(1		)
Total return swaps - equity index	(6		)	—			—			—			(6		)
Total	$	43		$	(5	)	$	43		$	(22	)	$	59

2017
Equity and index contracts	$	(15	)	$	—		$	47		$	28		$	60
Embedded derivative financial instruments	—			9			(6		)	—			3
Foreign currency contracts	(27		)	—			—			6			(21		)
Credit default contracts	(4		)	—			—			—			(4		)
Total	$	(46	)	$	9		$	41		$	34		$	38

Counterparty credit exposure by counterparty credit rating



OTC derivatives counterparty credit exposure by counterparty credit rating
($ in millions)	2019							2018
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⁾
A+	6	868		29		—		3	643		19		1
A	—	—		—		—		2	121		1		—
Total	6	$	868	$	29	$	—	5	$	764	$	20	$	1


⁽¹⁾	Allstate uses the lower of S&P’s or Moody’s long-term debt issuer 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)	2019			2018
Gross liability fair value of contracts containing credit-risk-contingent features	$	16		$	11
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(11		)	(5		)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	(3		)	(2		)
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$	2		$	4

Contractual amounts of off-balance-sheet financial instruments



Contractual amounts of off balance sheet financial instruments
	As of December 31,
($ in millions)	2019		2018
Commitments to invest in limited partnership interests	$	2,837	$	3,028
Private placement commitments	68		47
Other loan commitments	189		233

Benefit Plans - Obligations and funded status narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Retirement Benefits [Abstract]
Maximum annual medical cost inflation after retirement for Company's share of retiree medical benefits cost for non Medicare-eligible retirees (as a percent)	5.00%
Pension benefits
Components of net periodic cost
Accumulated benefit obligation (ABO)	$ 7,020	$ 6,150
Company's Pension Plans with an ABO in excess of plan assets
Company's pension plans with ABO in excess of plan assets, aggregate projected benefit obligation	6,730	5,990
Company's pension plans with ABO in excess of plan assets, aggregate accumulated benefit obligation	6,620	5,930
Company's pension plans with ABO in excess of plan assets, aggregate fair value of plan assets	5,790	5,070
Defined benefit plans' accrued benefit costs related to certain unfunded and non-qualified plans	$ 137	$ 135
Postretirement benefits
Defined benefit plan, assumed health care cost trend rates
Weighted average health care cost trend rate	7.00%
Ultimate health care cost trend rate in 2038 and thereafter	4.50%

Document and Entity Information Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Jan. 31, 2020	Jun. 30, 2019
Document Information [Line Items]
Entity Central Index Key	0000899051
Entity Filer Category	Large Accelerated Filer
Entity Incorporation, State or Country Code	DE
Entity Common Stock, Shares Outstanding		316,913,648
Document Type	10-K
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2019
Document Transition Report	false
Entity File Number	1-11840
Entity Registrant Name	ALLSTATE CORP
Entity Address, Address Line One	2775 Sanders Road
Entity Address, City or Town	Northbrook
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60062
City Area Code	847
Local Phone Number	402-5000
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Public Float			$ 33,040
Entity Tax Identification Number	36-3871531
Entity Small Business	false
Entity Emerging Growth Company	false
Documents Incorporated by Reference	Documents Incorporated By Reference Portions of the following documents are incorporated herein by reference as follows: Part III of this Form 10-K incorporates by reference certain information from the registrant’s definitive proxy statement for its annual stockholders meeting to be held on May 19, 2020, (the “Proxy Statement”) to be filed not later than 120 days after the end of the fiscal year covered by this Form 10-K.
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false
Common stock par value \| CHICAGO STOCK EXCHANGE, INC
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	ALL
Security Exchange Name	CHX
Common stock par value \| NEW YORK STOCK EXCHANGE, INC.
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	ALL
Security Exchange Name	NYSE
5.100% Subordinated Debentures, due 2053 \| NEW YORK STOCK EXCHANGE, INC.
Document Information [Line Items]
Title of 12(b) Security	5.100% Fixed-to-Floating Rate Subordinated Debentures due 2053
Trading Symbol	ALL.PR.B
Security Exchange Name	NYSE
Series G Preferred Stock \| NEW YORK STOCK EXCHANGE, INC.
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares represent 1/1,000th of a share of 5.625% Noncumulative Preferred Stock, Series G
Trading Symbol	ALL PR G
Security Exchange Name	NYSE
Series H \| NEW YORK STOCK EXCHANGE, INC.
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares represent 1/1,000th of a share of 5.100% Noncumulative Preferred Stock, Series H
Trading Symbol	ALL PR H
Security Exchange Name	NYSE
Series I \| NEW YORK STOCK EXCHANGE, INC.
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares represent 1/1,000th of a share of 4.750% Noncumulative Preferred Stock, Series I
Trading Symbol	ALL PR I
Security Exchange Name	NYSE

Schedule I - Summary of Investments Other than Investments in Related Parties

12 Months Ended

Dec. 31, 2019

SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract]

Schedule I — Summary of Investments Other than Investments in Related Parties



	As of December 31, 2019
($ in millions)	Cost/amortized cost		Fair value (if applicable)		Amount shown in the Balance Sheet
Type of investment
Fixed maturities:
Bonds:
United States government, government agencies and authorities	$	4,971	$	5,086	$	5,086
States, municipalities and political subdivisions	8,080		8,620		8,620
Foreign governments	968		979		979
Public utilities	5,197		5,576		5,576
All other corporate bonds	35,893		37,502		37,502
Asset-backed securities	860		862		862
Mortgage-backed securities	324		419		419
Total fixed maturities	56,293		$	59,044	59,044

Equity securities:
Common stocks:
Public utilities	98		136		136
Banks, trusts and insurance companies	565		771		771
Industrial, miscellaneous and all other	5,662		6,957		6,957
Nonredeemable preferred stocks	243		298		298
Total equity securities	6,568		$	8,162	8,162

Mortgage loans on real estate	4,817		5,012		4,817
Real estate (none acquired in satisfaction of debt)	1,005				1,005
Policy loans	894				894
Derivative instruments	140		140		140
Limited partnership interests	8,078				8,078
Other long-term investments	1,966				1,966
Short-term investments	4,256		4,256		4,256
Total investments	$	84,017			$	88,362

Deferred Policy Acquisition and Sales Inducement Costs

12 Months Ended

Dec. 31, 2019

Deferred Policy Acquisition and Sales Inducement Costs

Deferred Policy Acquisition and Sales Inducement Costs



Note 11	Deferred Policy Acquisition and Sales Inducement Costs



Deferred policy acquisition costs activity
	For the years ended December 31,
($ in millions)	2019			2018			2017
Balance, beginning of year	$	4,784		$	4,191		$	3,954
SquareTrade acquisition	—			—			66
Acquisition costs deferred	5,622			5,663			5,001
Amortization charged to income	(5,533		)	(5,222		)	(4,784		)
Effect of unrealized gains and losses	(174		)	152			(46		)
Balance, end of year	$	4,699		$	4,784		$	4,191



Deferred sales inducement costs activity ⁽¹⁾
	For the years ended December 31,
($ in millions)	2019			2018			2017
Balance, beginning of year	$	34		$	36		$	40
Amortization charged to income	(5		)	(4		)	(4		)
Effect of unrealized gains and losses	(2		)	2			—
Balance, end of year	$	27		$	34		$	36

⁽¹⁾

Deferred sales inducement costs primarily relate to fixed annuities and interest-sensitive life contracts and are recorded as part of other assets on the Consolidated Statements of Financial Position.

Benefit Plans - Changes in benefit obligations (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Change in benefit obligation
Service cost	$ 125	$ 117	$ 119
Interest cost	254	270	269
Pension benefits
Change in benefit obligation
Benefit obligation, beginning of year	6,224	6,815
Service cost	117	110	111
Interest cost	240	255	254
Participant contributions	0	0
Actuarial (gain) loss	(927)	255
Benefits paid	(356)	(646)
Translation adjustment and other	(13)	(55)
Benefit obligation, end of year	7,139	6,224	6,815
Change in pension plan assets
Fair value of plan assets, beginning of year	5,299	6,284
Actual return on plan assets	1,235	(300)
Employer contribution	27	16
Benefits paid	(356)	(646)
Translation adjustment and other	(13)	(55)
Funded status	(947)	(925)
Fair value of plan assets, end of year	6,192	5,299	6,284
Prior service credit	(142)
Unamortized pension and other postretirement prior service credit	(142)	(198)
Postretirement benefits
Change in benefit obligation
Benefit obligation, beginning of year	375	386
Service cost	8	7	8
Interest cost	14	15	15
Participant contributions	15	13
Actuarial (gain) loss	(19)	4
Benefits paid	(39)	(35)
Translation adjustment and other	5	(7)
Benefit obligation, end of year	397	375	$ 386
Change in pension plan assets
Fair value of plan assets, beginning of year
Employer contribution	24	22
Funded status	(397)	(375)
Fair value of plan assets, end of year
Prior service credit	(13)
Unamortized pension and other postretirement prior service credit	$ (13)	$ (16)

Reinsurance and Indemnification - Sanders Re 2017-2 (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Reinsurance Retention Policy [Line Items]
Limit of aggregate losses under aggregate excess agreement	$ 3,400
Sanders Re 2014-2 contract
Reinsurance Retention Policy [Line Items]
Term of catastrophe reinsurance agreement contract	3 years
Limit of aggregate losses under aggregate excess agreement	$ 200
Retention amount for catastrophe reinsurance agreement contracts	$ 20

Reinsurance and Indemnification - Wrap Fill Excess Catastrophe Reinsurance Contract (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Ceded Credit Risk [Line Items]
Limit of aggregate losses under aggregate excess agreement	$ 3,400
Wrap Fill Excess Catastrophe Reinsurance Contract
Ceded Credit Risk [Line Items]
Retention amount for catastrophe reinsurance agreement contracts	$ 200
Co-participation percentage	5.00%
Retention percentage of reinsurance limit	100.00%
Limit of aggregate losses under aggregate excess agreement	$ 1,610
Catastrophe reinsurance aggregate loss limit	3,070
Minimum \| Wrap Fill Excess Catastrophe Reinsurance Contract
Ceded Credit Risk [Line Items]
Retention amount for catastrophe reinsurance agreement contracts	$ 2,750

Reinsurance and Indemnification - Michigan Catastrophic Claims Association (Details) - USD ($)	6 Months Ended	12 Months Ended	24 Months Ended
	Jun. 30, 2019	Dec. 31, 2019	Jun. 30, 2021	Jun. 30, 2019	Dec. 31, 2018
Reinsurance Retention Policy [Line Items]
Assets		$ 119,950,000,000			$ 112,249,000,000
Retained income		48,074,000,000			44,033,000,000
Michigan Catastrophic Claim Association
Reinsurance Retention Policy [Line Items]
Reinsurance and indemnification recoverables, net		5,500,000,000			$ 5,400,000,000
Program funding, per vehicle annual assessment		$ 220
Reinsurance increase, percentage		6.00%
Retention level per claim				$ 555,000
Assets	$ 21,830,000,000			21,830,000,000
Retained income	1,280,000,000			$ 1,280,000,000
Retained earnings accumulated deficit decrease	$ (39,640,000,000)
Subsequent Event \| Michigan Catastrophic Claim Association
Reinsurance Retention Policy [Line Items]
Retention level per claim			$ 580,000
Term of catastrophe reinsurance agreement contract			2 years

Investments - Scheduled maturities for fixed Income securities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Amortized cost
Due in one year or less	$ 3,214
Due after one year through five years	24,108
Due after five years through ten years	18,194
Due after ten years	9,593
Subtotal	55,109
ABS and MBS	1,184
Amortized cost	56,293	$ 57,134
Fair value
Due in one year or less	3,239
Due after one year through five years	24,781
Due after five years through ten years	19,177
Due after ten years	10,566
Subtotal	57,763
ABS and MBS	1,281
Fair value	$ 59,044	$ 57,170

Derivative Financial Instruments and Off-balance sheet Financial Instruments - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) contract	Sep. 30, 2019 contract	Dec. 31, 2018 USD ($) contract
Derivative [Line Items]
Potential recoveries	$ 0
Number of derivative designated as a fair value hedge \| contract	17,232		26,170
Cash and securities pledged as collateral, from counterparties	$ 31
Securities pledged as collateral to counterparties	3
Collateral posted	3		$ 2
Margin deposits	$ 48
Designated as Hedging Instrument \| Fair Value Hedging
Derivative [Line Items]
Number of derivative designated as a fair value hedge \| contract		1	1
Designated as Hedging Instrument \| Cash Flow Hedging
Derivative [Line Items]
Number of derivative designated as a cash flow hedge \| contract		0	0

Reinsurance and Indemnification - Aggregate Excess Catastrophe Florida and Southeast States Reinsurance Contract (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Reinsurance Retention Policy [Line Items]
Limit of aggregate losses under aggregate excess agreement	$ 3,400
Aggregate Excess Catastrophe Florida Reinsurance Contract
Reinsurance Retention Policy [Line Items]
Term of catastrophe reinsurance agreement contract	1 year
Retention percentage of reinsurance limit	80.00%
Limit of aggregate losses under aggregate excess agreement	$ 250

Reserve for Life-Contingent Contract Benefits and Contractholder Funds - Summary of liabilities for guarantees (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Balance at beginning of period	$ 444	$ 370
Less reinsurance recoverables	185	146
Net balance at beginning of period	259	224
Incurred guarantee benefits	30	37
Paid guarantee benefits	(3)	(2)
Net change	27	35
Net balance at end of period	286	259
Plus reinsurance recoverables	133	185
Balance at end of period	419	444
In the event of death \| Variable annuities
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Balance at beginning of period	109	85
Balance at end of period	78	109
At annuitization (includes income benefit guarantees) \| Variable annuities
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Balance at beginning of period	36	26
Balance at end of period	21	36
Accumulation at specified dates \| Variable annuities
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Balance at beginning of period	25	22
Balance at end of period	18	25
For cumulative periodic withdrawals \| Variable annuities
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Balance at beginning of period	14	12
Balance at end of period	14	14
Other Guarantees \| Variable annuities
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Balance at beginning of period	260	225
Balance at end of period	288	260
Liability for guarantees related to death benefits and interest-sensitive life products
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Balance at beginning of period	308	262
Less reinsurance recoverables	111	87
Net balance at beginning of period	197	175
Incurred guarantee benefits	18	24
Paid guarantee benefits	(3)	(2)
Net change	15	22
Net balance at end of period	212	197
Plus reinsurance recoverables	81	111
Balance at end of period	293	308
At annuitization (includes income benefit guarantees)
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Balance at beginning of period	39	29
Less reinsurance recoverables	35	25
Net balance at beginning of period	4	4
Incurred guarantee benefits	0	0
Paid guarantee benefits	0	0
Net change	0	0
Net balance at end of period	4	4
Plus reinsurance recoverables	20	35
Balance at end of period	24	39
Liability for guarantees related to accumulation and withdrawal benefits
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Balance at beginning of period	97	79
Less reinsurance recoverables	39	34
Net balance at beginning of period	58	45
Incurred guarantee benefits	12	13
Paid guarantee benefits	0	0
Net change	12	13
Net balance at end of period	70	58
Plus reinsurance recoverables	32	39
Balance at end of period	$ 102	$ 97

Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property-liability insurance premiums earned	$ 1,407	$ 1,306	$ 1,274
Property-liability insurance claims and claims expense
Reinsurance ceded amount	524	1,378	1,807
Life and annuity contract benefits
Reinsurance ceded amount	165	240	179
Interest credited to contractholder funds
Reinsurance ceded amount	20	24	25
Property-liability insurance premiums earned
Property-liability insurance premiums earned	1,122	1,016	971
Life and annuity premiums and contract charges
Life and annuity premiums and contract charges	$ 285	$ 290	$ 303

Reinsurance and Indemnification - Industry pools and facilities (Details) - USD ($)	6 Months Ended	12 Months Ended			24 Months Ended
	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2019
Reinsurance Retention Policy [Line Items]
Cash and invested assets		$ 119,950,000,000	$ 112,249,000,000
Accumulated deficit		(48,074,000,000)	(44,033,000,000)
Ceded premium earned		1,407,000,000	1,306,000,000	$ 1,274,000,000
Michigan Catastrophic Claim Association
Reinsurance Retention Policy [Line Items]
Reinsurance and indemnification recoverables, net		5,500,000,000	5,400,000,000
Program funding, per vehicle annual assessment		$ 220
Reinsurance increase, percentage		6.00%
Retention level per claim					$ 555,000
Cash and invested assets	$ 21,830,000,000				21,830,000,000
Accumulated deficit	(1,280,000,000)				$ (1,280,000,000)
Retained earnings accumulated deficit decrease	$ 39,640,000,000
New Jersey Unsatisfied Claim and Judgment Fund
Reinsurance Retention Policy [Line Items]
Reinsurance and indemnification recoverables, net		$ 446,000,000	$ 461,000,000
Minimum medical benefits portion of personal injury protection coverage for reimbursement to insurers for policies issued or renewed prior to January 1, 1991		75,000
Minimum medical benefits portion of personal injury protection coverage for reimbursement to insurers for policies issued or renewed from January 1, 1991 to December 31, 2004		75,000
Maximum reimbursement to insurers for medical benefits paid under personal injury protection coverage.		250,000
Reinsurance, administration assessments paid		$ 8,100,000
Florida Hurricane Catastrophe Fund
Reinsurance Retention Policy [Line Items]
Emergency assessment maximum percentage of premiums first year		6.00%
Emergency assessment maximum percentage of premiums subsequent years		10.00%
Emergency assessment maximum percentage of premiums subsequent years, FL OIR		0.00%
Emergency assessment, bonds issued				$ 2,000,000,000.00

Commitments, Guarantees and Contingent Liabilities - New Jersey and North Carolina (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
North Carolina Joint Underwriters Association
Loss Contingencies
Plan surplus receivable	$ 5
Funds surplus in member's equity	(29)
North Carolina Insurance Underwriting Association
Loss Contingencies
Funds surplus in member's equity	439
Maximum possible assessment	$ 1,000
Percentage of surcharge on property insurance policy statewide to be remitted to the plan	10.00%

Consolidated Statements of Shareholders’ Equity - USD ($) $ in Millions	Total	Preferred Stock	Balance, end of year	Common stock par value	Common stock additional capital paid-in	Retained income	Deferred ESOP expense	Treasury stock	Accumulated other comprehensive income (loss)
Balance, beginning of year at Dec. 31, 2016			$ 1,746		$ 3,303	$ 39,009	$ (6)	$ (24,741)	$ 1,249
Increase (decrease) in equity
Preferred stock issuance, net of issuance costs			0
Preferred stock redemption			0
Forward contract on accelerated share repurchase agreement					(45)
Equity incentive plans activity					55
Net income	$ 3,554					3,554
Dividends on common stock (declared per share of $2.00, $1.84 and $1.48)						(540)
Dividends on preferred stock						(116)
Payments	3
Shares acquired								(1,423)
Shares reissued under equity incentive plans, net								182
Change in unrealized net capital gains and losses	319								319
Change in unrealized foreign currency translation adjustments	45								45
Change in unamortized pension and other postretirement prior service credit	(52)								(52)
Reclassification of tax effects due to change in accounting principle						(328)			328
Balance, end of year at Dec. 31, 2017	22,551	$ 0	1,746	$ 9	3,313	41,579	(3)	(25,982)	1,889
Increase (decrease) in equity
Cumulative effect of change in accounting principle									(910)
Preferred stock issuance, net of issuance costs			557
Preferred stock redemption			(373)
Forward contract on accelerated share repurchase agreement					(105)
Equity incentive plans activity					102
Net income	2,160					2,160
Dividends on common stock (declared per share of $2.00, $1.84 and $1.48)						(646)
Dividends on preferred stock						(148)
Payments	0
Shares acquired								(2,198)
Shares reissued under equity incentive plans, net								95
Change in unrealized net capital gains and losses	(754)								(754)
Change in unrealized foreign currency translation adjustments	(48)								(48)
Change in unamortized pension and other postretirement prior service credit	(59)								(59)
Reclassification of tax effects due to change in accounting principle						0			0
Balance, end of year at Dec. 31, 2018	21,312	0	1,930	9	3,310	44,033	(3)	(28,085)	118
Increase (decrease) in equity
Preferred stock issuance, net of issuance costs			1,414
Preferred stock redemption			(1,096)
Forward contract on accelerated share repurchase agreement					75
Equity incentive plans activity					78
Net income	4,847					4,847
Dividends on common stock (declared per share of $2.00, $1.84 and $1.48)						(658)
Dividends on preferred stock						(169)
Payments	3
Shares acquired								(1,810)
Shares reissued under equity incentive plans, net								149
Change in unrealized net capital gains and losses	1,889								1,889
Change in unrealized foreign currency translation adjustments	(10)								(10)
Change in unamortized pension and other postretirement prior service credit	(47)								(47)
Reclassification of tax effects due to change in accounting principle						0			0
Balance, end of year at Dec. 31, 2019	$ 25,998	$ 0	$ 2,248	$ 9	$ 3,463	$ 48,074	$ 0	$ (29,746)	$ 1,950

Reporting Segments (Tables)

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Schedule of business segments revenue disclosures



Reportable segments revenue information
	For the years ended December 31,
($ in millions)	2019			2018			2017
Property-Liability
Insurance premiums
Auto	$	24,188		$	22,970		$	21,878
Homeowners	7,912			7,517			7,310
Other personal lines	1,861			1,808			1,750
Commercial lines	882			655			495
Allstate Protection	34,843			32,950			31,433
Discontinued Lines and Coverages	—			—			—
Total Property-Liability insurance premiums	34,843			32,950			31,433
Other revenue	741			738			703
Net investment income	1,533			1,464			1,478
Realized capital gains and losses	1,470			(639		)	401
Total Property-Liability	38,587			34,513			34,015

Service Businesses
Consumer product protection plans	633			503			295
Roadside assistance	238			263			268
Finance and insurance products	362			332			304
Intersegment premiums and service fees ⁽¹⁾	154			122			110
Other revenue	188			82			66
Net investment income	42			27			16
Realized capital gains and losses	32			(11		)	—
Total Service Businesses	1,649			1,318			1,059

Allstate Life
Traditional life insurance premiums	630			600			568
Accident and health insurance premiums	2			2			2
Interest-sensitive life insurance contract charges	711			713			710
Other revenue	125			119			114
Net investment income	514			505			489
Realized capital gains and losses	1			(14		)	5
Total Allstate Life	1,983			1,925			1,888

Allstate Benefits
Traditional life insurance premiums	43			44			42
Accident and health insurance premiums	988			980			928
Interest-sensitive life insurance contract charges	114			111			114
Net investment income	83			77			72
Realized capital gains and losses	12			(9		)	1
Total Allstate Benefits	1,240			1,203			1,157

Allstate Annuities
Fixed annuities contract charges	13			15			14
Net investment income	917			1,096			1,305
Realized capital gains and losses	346			(166		)	44
Total Allstate Annuities	1,276			945			1,363

Corporate and Other
Net investment income	70			71			41
Realized capital gains and losses	24			(38		)	(6		)
Total Corporate and Other	94			33			35
Intersegment eliminations ⁽¹⁾	(154		)	(122		)	(110		)
Consolidated revenues	$	44,675		$	39,815		$	39,407

⁽¹⁾ Intersegment insurance premiums and service fees are primarily related to Arity and Allstate Roadside Services and are eliminated in the consolidated financial statements.

Schedule of business segments net income disclosures



Reportable segments financial performance
	For the years ended December 31,
($ in millions)	2019			2018			2017
Property-Liability
Allstate Protection	$	2,912		$	2,343		$	2,304
Discontinued Lines and Coverages	(108		)	(90		)	(99		)
Total underwriting income	2,804			2,253			2,205
Net investment income	1,533			1,464			1,478
Income tax expense on operations	(887		)	(747		)	(1,187		)
Realized capital gains and losses, after-tax	1,161			(500		)	272
Gain on disposition of operations, after-tax	—			—			9
Tax Legislation (expense) benefit	—			(5		)	36
Property-Liability net income applicable to common shareholders	4,611			2,465			2,813

Service Businesses
Adjusted net income (loss)	38			8			(54		)
Realized capital gains and losses, after-tax	25			(9		)	—
Amortization of purchased intangibles, after-tax	(97		)	(74		)	(60		)
Impairment of purchased intangibles, after-tax	(43		)	—			—
Tax Legislation (expense) benefit	—			(4		)	137
Service Businesses net (loss) income applicable to common shareholders	(77		)	(79		)	23

Allstate Life
Adjusted net income	261			295			259
Realized capital gains and losses, after-tax	—			(11		)	2
Valuation changes on embedded derivatives not hedged, after-tax	(9		)	—			—
DAC and DSI amortization related to realized capital gains and losses and valuation changes on embedded derivatives not hedged, after-tax	(5		)	(8		)	(10		)
Tax Legislation (expense) benefit	—			(16		)	338
Allstate Life net income applicable to common shareholders	247			260			589

Allstate Benefits
Adjusted net income	115			124			100
Realized capital gains and losses, after-tax	9			(7		)	—
DAC and DSI amortization related to realized capital gains and losses, after-tax	—			1			—
Tax Legislation benefit	—			—			54
Allstate Benefits net income applicable to common shareholders	124			118			154

Allstate Annuities
Adjusted net income	10			131			205
Realized capital gains and losses, after-tax	274			(131		)	28
Valuation changes on embedded derivatives not hedged, after-tax	(6		)	3			—
Gain on disposition of operations, after-tax	4			4			4
Tax Legislation benefit	—			69			182
Allstate Annuities net income applicable to common shareholders	282			76			419

Corporate and Other
Adjusted net loss	(438		)	(406		)	(320		)
Realized capital gains and losses, after-tax	19			(30		)	(4		)
Pension and other postretirement remeasurement gains and losses, after-tax	(90		)	(370		)	141
Goodwill impairment	—			—			(125		)
Business combination expenses, after-tax	—			(7		)	(14		)
Tax Legislation expense	—			(15		)	(238		)
Consolidated and Other net loss applicable to common shareholders	(509		)	(828		)	(560		)

Consolidated net income applicable to common shareholders	$	4,678		$	2,012		$	3,438



Additional significant financial performance data
	For the years ended December 31,
($ in millions)	2019			2018			2017
Amortization of DAC
Property-Liability	$	4,649		$	4,475		$	4,205
Service Businesses	543			463			296
Allstate Life	173			132			134
Allstate Benefits	161			145			142
Allstate Annuities	7			7			7
Consolidated	$	5,533		$	5,222		$	4,784

Income tax expense (benefit)
Property-Liability	$	1,196		$	613		$	1,285
Service Businesses	(18		)	(19		)	(194		)
Allstate Life	53			75			(226		)
Allstate Benefits	35			32			1
Allstate Annuities	73			(66		)	(58		)
Corporate and Other	(97		)	(167		)	187
Consolidated	$	1,242		$	468		$	995

Additional significant financial performance data



Additional significant financial performance data
	For the years ended December 31,
($ in millions)	2019			2018			2017
Amortization of DAC
Property-Liability	$	4,649		$	4,475		$	4,205
Service Businesses	543			463			296
Allstate Life	173			132			134
Allstate Benefits	161			145			142
Allstate Annuities	7			7			7
Consolidated	$	5,533		$	5,222		$	4,784

Income tax expense (benefit)
Property-Liability	$	1,196		$	613		$	1,285
Service Businesses	(18		)	(19		)	(194		)
Allstate Life	53			75			(226		)
Allstate Benefits	35			32			1
Allstate Annuities	73			(66		)	(58		)
Corporate and Other	(97		)	(167		)	187
Consolidated	$	1,242		$	468		$	995

Summarized data for total assets and investments



Reportable segment total assets and investments ⁽¹⁾
	As of December 31,
($ in millions)	2019		2018
Assets
Property-Liability	$	67,243	$	61,947
Service Businesses	5,746		5,473
Allstate Life	14,771		13,613
Allstate Benefits	2,915		2,822
Allstate Annuities	26,914		26,798
Corporate and Other	2,361		1,596
Consolidated	$	119,950	$	112,249

Investments
Property-Liability	$	48,414	$	43,634
Service Businesses	1,544		1,203
Allstate Life	11,914		10,809
Allstate Benefits	1,941		1,809
Allstate Annuities	22,221		22,336
Corporate and Other	2,328		1,469
Consolidated	$	88,362	$	81,260

Statutory Financial Information and Dividend Limitations

12 Months Ended

Dec. 31, 2019

Statutory Financial Information and Dividend Limitations [Abstract]

Statutory Financial Information and Dividend Limitations



Note 16	Statutory Financial Information and Dividend Limitations

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

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



Statutory net income (loss) and capital and surplus of Allstate’s domestic insurance subsidiaries
	Net income (loss)						Capital and surplus
($ in millions)	2019		2018		2017		2019		2018
Amounts by major business type:
Property and casualty insurance	$	3,989	$	2,939	$	3,050	$	16,192	$	14,328
Life insurance, annuities and voluntary accident and health insurance	422		465		327		4,208		3,819
Amount per statutory accounting practices	$	4,411	$	3,404	$	3,377	$	20,400	$	18,147

Dividend Limitations

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

The payment of shareholder dividends by AIC without the prior approval of the Illinois Department of Insurance (“IL DOI”) is limited to formula amounts based on net income and capital and surplus, determined in conformity with statutory accounting practices, as well as the timing and amount of dividends paid in the preceding twelve months. AIC paid dividends of $2.73 billion in 2019. The maximum amount of dividends AIC will be able to pay without prior IL DOI approval at a given point in time during 2020 is $3.73 billion, less dividends paid during the preceding twelve months measured at that point in time. The payment of a dividend in excess of this amount requires 30 days advance written notice to the IL DOI. The dividend is deemed approved, unless the IL DOI disapproves it within the 30 day notice period. Additionally, any dividend must be paid out of unassigned surplus excluding unrealized appreciation from investments, which for AIC totaled $12.09 billion as of December 31, 2019, and cannot result in capital and surplus being less than the minimum amount required by law.

Under state insurance laws, insurance companies are required to maintain paid up capital of not less than the minimum capital requirement applicable to the types of insurance they are authorized to write. Insurance companies are also subject to risk-based capital (“RBC”) requirements adopted by state

insurance regulators. A company’s “authorized control level RBC” is calculated using various factors applied to certain financial balances and activity. Companies that do not maintain adjusted statutory capital and surplus at a level in excess of the company action level RBC, which is two times authorized control level RBC, are required to take specified actions. Company action level RBC is significantly in excess of the minimum capital requirements. Total adjusted statutory capital and surplus and authorized control level RBC of AIC were $19.57 billion and $3.04 billion, respectively, as of December 31, 2019. Most of the Corporation’s insurance subsidiaries are subsidiaries of and/or reinsure all of their business to AIC, including ALIC. AIC’s subsidiaries are included as a component of AIC’s total statutory capital and surplus.

The amount of restricted net assets, as represented by the Corporation’s investment in its insurance subsidiaries, was $28.93 billion as of December 31, 2019.

Intercompany transactions

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

Schedule III - Supplementary Insurance Information

12 Months Ended

Dec. 31, 2019

SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract]

Schedule III — Supplementary Insurance Information



($ in millions)	As of December 31,						For the years ended December 31,
Segment	Deferred policy acquisition costs		Reserves for claims and claims expense, contract benefits and contractholder funds		Unearned premiums		Premium revenue and contract charges			Net investment income ⁽¹⁾		Claims and claims expense, contract benefits and interest credited to contractholders			Amortization of deferred policy acquisition costs		Other operating costs and expenses			Premiums written (excluding life)
2019
Property-Liability
Allstate Protection	$	1,624	$	25,843	$	12,567	$	34,843				$	23,517		$	4,649	$	4,506		$	35,419
Discontinued Lines and Coverages	—		1,818		—		—					105			—		3			—
Total Property-Liability	1,624		27,661		12,567		34,843			$	1,533	23,622			4,649		4,509			35,419
Service Businesses ⁽²⁾	1,449		51		2,765		1,387			42		363			543		838			1,535
Allstate Life	1,079		10,541		3		1,343			514		1,154			173		356			—
Allstate Benefits	527		1,950		8		1,145			83		635			161		285			988
Allstate Annuities	20		17,501		—		13			917		890			7		30			—
Corporate and Other	—		—		—		—			70		—			—		531			—
Intersegment Eliminations ⁽²⁾	—		—		—		(154		)	—		(9		)	—		(145		)	—
Total	$	4,699	$	57,704	$	15,343	$	38,577		$	3,159	$	26,655		$	5,533	$	6,404		$	37,942
2018
Property-Liability
Allstate Protection	$	1,618	$	25,495	$	11,953	$	32,950				$	22,348		$	4,475	$	4,522		$	33,555
Discontinued Lines and Coverages	—		1,864		—		—					87			—		3			—
Total Property-Liability	1,618		27,359		11,953		32,950			$	1,464	22,435			4,475		4,525			33,555
Service Businesses ⁽²⁾	1,290		64		2,546		1,220			27		350			463		603			1,431
Allstate Life	1,300		10,333		3		1,315			505		1,094			132		364			—
Allstate Benefits	549		1,905		8		1,135			77		630			145		278			980
Allstate Annuities	27		18,341		—		15			1,096		903			7		31			—
Corporate and Other	—		—		—		—			71		—			—		880			—
Intersegment Eliminations ⁽²⁾	—		—		—		(122		)	—		(7		)	—		(115		)	—
Total	$	4,784	$	58,002	$	14,510	$	36,513		$	3,240	$	25,405		$	5,222	$	6,566		$	35,966
2017
Property-Liability
Allstate Protection	$	1,510	$	24,336	$	11,409	$	31,433				$	21,388		$	4,205	$	4,239		$	31,648
Discontinued Lines and Coverages	—		1,893		—		—					96			—		3			—
Total Property-Liability	1,510		26,229		11,409		31,433			$	1,478	21,484			4,205		4,242			31,648
Service Businesses ⁽²⁾	954		96		2,052		977			16		369			296		565			1,094
Allstate Life	1,152		10,244		4		1,280			489		1,047			134		344			—
Allstate Benefits	541		1,869		8		1,084			72		599			142		261			919
Allstate Annuities	34		19,870		—		14			1,305		967			7		34			—
Corporate and Other	—		—		—		—			41		—			—		292			—
Intersegment Eliminations ⁽²⁾	—		—		—		(110		)	—		(6		)	—		(104		)	—
Total	$	4,191	$	58,308	$	13,473	$	34,678		$	3,401	$	24,460		$	4,784	$	5,634		$	33,661


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

⁽²⁾

Includes intersegment premiums and service fees and the related incurred losses and expenses that are eliminated in the consolidated financial statements.

Reserve for Property-Liability Insurance Claims and Claims Expense

12 Months Ended

Dec. 31, 2019

Reserve for Property-Liability Insurance Claims and Claims Expense

Reserve for Property-Liability Insurance Claims and Claims Expense



Note 8	Reserve for Property and Casualty 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, Discontinued Lines and Coverages and reinsurance and indemnification recoverables, 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 and casualty insurance claims and claims expense in the Consolidated Statements of Operations in the period such changes are determined.



Rollforward of reserve for property and casualty insurance claims and claims expense
($ in millions)	2019			2018			2017
Balance as of January 1	$	27,423		$	26,325		$	25,250
Less recoverables ⁽¹⁾	(7,155		)	(6,471		)	(6,184		)
Net balance as of January 1	20,268			19,854			19,066
SquareTrade acquisition as of January 3, 2017	—			—			17
Incurred claims and claims expense related to:
Current year	24,106			23,033			22,350
Prior years	(130		)	(255		)	(503		)
Total incurred	23,976			22,778			21,847
Claims and claims expense paid related to:
Current year	(15,160		)	(14,877		)	(14,112		)
Prior years	(8,284		)	(7,487		)	(6,964		)
Total paid	(23,444		)	(22,364		)	(21,076		)
Net balance as of December 31	20,800			20,268			19,854
Plus recoverables	6,912			7,155			6,471
Balance as of December 31	$	27,712		$	27,423		$	26,325

⁽¹⁾Recoverables comprises reinsurance and indemnification recoverables. See Note 10 for further details.



Reconciliation of total claims and claims expense incurred and paid by coverage	December 31, 2019
($ in millions)	Incurred			Paid
Allstate Protection
Auto insurance - liability coverage	$	9,142		$	(8,419	)
Auto insurance - physical damage coverage	5,576			(5,570		)
Homeowners insurance	4,625			(4,616		)
Total auto and homeowners insurance	19,343			(18,605		)
Other personal lines	1,024			(1,059		)
Commercial lines	648			(404		)
Service Businesses	297			(311		)
Discontinued Lines and Coverages	91			(121		)
Unallocated loss adjustment expenses (“ULAE”)	2,687			(2,585		)
Claims incurred and paid from before 2015	(97		)	(444		)
Other	(17		)	85
Total	$	23,976		$	(23,444	)

Incurred claims and claims expense represents the sum of paid losses, claim adjustment expenses and reserve changes in the calendar year. This expense includes losses from catastrophes of $2.56 billion, $2.86 billion and $3.23 billion in 2019, 2018 and 2017, respectively, net of recoverables. Catastrophes are an inherent risk of the property and casualty insurance business that have contributed to, and will continue to contribute to, material year-to-year fluctuations in the Company’s results of operations and financial position.

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



Prior year reserve reestimates included in claims and claims expense ⁽¹⁾
	Twelve months ended December 31,
($ in millions)	Non-catastrophe losses									Catastrophe losses									Total
	2019			2018			2017			2019			2018			2017			2019			2018			2017
Auto ⁽²⁾	$	(306	)	$	(416	)	$	(475	)	$	(17	)	$	(39	)	$	(15	)	$	(323	)	$	(455	)	$	(490	)
Homeowners	(1		)	(51		)	(124		)	66			65			(7		)	65			14			(131		)
Other personal lines	8			(6		)	(2		)	—			(1		)	3			8			(7		)	1
Commercial lines	18			108			18			(1		)	—			1			17			108			19
Discontinued Lines and Coverages ⁽³⁾	105			87			96			—			—			—			105			87			96
Service Businesses	(2		)	(2		)	2			—			—			—			(2		)	(2		)	2
Total prior year reserve reestimates	$	(178	)	$	(280	)	$	(485	)	$	48		$	25		$	(18	)	$	(130	)	$	(255	)	$	(503	)


⁽¹⁾	Favorable reserve reestimates are shown in parentheses.


⁽²⁾	Non-catastrophe results related to continued favorable personal lines auto injury coverage development.


⁽³⁾	The Company’s 2019 annual reserve review, using established industry and actuarial best practices, resulted in unfavorable reestimates of $95 million.

The following presents information about incurred and paid claims development as of December 31, 2019, net of recoverables, as well as the cumulative number of reported claims and the total of IBNR reserves plus expected development on reported claims included in the net incurred claims amounts. See Note 2 for the accounting policy and methodology for determining reserves for claims and claims expense, including both reported and IBNR claims. The cumulative number of reported claims is identified by coverage and excludes reported claims for industry pools and facilities where information is not available. The information about incurred and paid claims development for the 2015 to 2019 years, and the average annual percentage payout of incurred claims by age as of December 31, 2019, is presented as required supplementary information.

Auto insurance – liability coverage



($ in millions, except number of reported claims)	Incurred claims and allocated claim adjustment expenses, net of recoverables													IBNR reserves plus expected development on reported claims		Cumulative number of reported claims
	For the years ended December 31,										Prior year reserve reestimates			As of December 31, 2019
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2015		2016		2017		2018		2019
2015	$	8,763	$	8,733	$	8,677	$	8,617	$	8,578	$	(39	)	$	519	2,383,853
2016	—		9,030		8,833		8,732		8,683		(49		)	988		2,399,890
2017	—		—		8,457		8,389		8,305		(84		)	1,777		2,214,254
2018	—		—		—		8,727		8,708		(19		)	3,093		2,169,753
2019	—		—		—		—		9,333					5,838		2,108,919
							Total		$	43,607	$	(191	)
Reconciliation to total prior year reserve reestimates recognized by line
Prior year reserve reestimates for pre-2015 accident years											(56		)
Prior year reserve reestimates for ULAE											14
Other											(1		)
Total prior year reserve reestimates											$	(234	)

	Cumulative paid claims and allocated claims adjustment expenses, net of recoverables
	For the years ended December 31,
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2015		2016		2017		2018		2019
2015	$	3,524	$	5,837	$	6,883	$	7,565	$	8,059
2016	—		3,485		5,768		6,849		7,695
2017	—		—		3,149		5,330		6,528
2018	—		—		—		3,229		5,615
2019	—		—		—		—		3,495
							Total		$	31,392
All outstanding liabilities before 2015, net of recoverables									1,274
Liabilities for claims and claim adjustment expenses, net of recoverables									$	13,489



Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2019
	1 year		2 years		3 years		4 years		5 years
Auto insurance – liability coverage	40.0	%	27.2	%	12.9	%	8.2	%	4.9	%

Auto insurance – physical damage coverage



($ in millions, except number of reported claims)	Incurred claims and allocated claim adjustment expenses, net of recoverables													IBNR reserves plus expected development on reported claims			Cumulative number of reported claims
	For the years ended December 31,										Prior year reserve reestimates			As of December 31, 2019
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2015		2016		2017		2018		2019
2015	$	4,653	$	4,681	$	4,669	$	4,660	$	4,656	$	(4	)	$	2		4,390,288
2016	—		5,125		5,052		5,025		5,020		(5		)	5			4,431,735
2017	—		—		5,119		5,037		5,025		(12		)	(2		)	4,236,640
2018	—		—		—		5,216		5,154		(62		)	17			4,306,335
2019	—		—		—		—		5,659					244			4,312,306
							Total		$	25,514	$	(83	)
Reconciliation to total prior year reserve reestimates recognized by line
Prior year reserve reestimates for pre-2015 accident years											(4		)
Prior year reserve reestimates for ULAE											(2		)
Other											—
Total prior year reserve reestimates											$	(89	)

	Cumulative paid claims and allocated claims adjustment expenses, net of recoverables
	For the years ended December 31,
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2015		2016		2017		2018		2019
2015	$	4,507	$	4,672	$	4,658	$	4,655	$	4,654
2016	—		4,887		5,031		5,019		5,016
2017	—		—		4,845		5,036		5,027
2018	—		—		—		4,968		5,137
2019	—		—		—		—		5,414
							Total		$	25,248
All outstanding liabilities before 2015, net of recoverables									7
Liabilities for claims and claim adjustment expenses, net of recoverables									$	273



Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2019
	1 year		2 years		3 years		4 years		5 years
Auto insurance – physical damage coverage	97.0	%	3.0	%	(0.2	)%	—	%	—	%

Homeowners insurance



($ in millions, except number of reported claims)	Incurred claims and allocated claim adjustment expenses, net of recoverables													IBNR reserves plus expected development on reported claims		Cumulative number of reported claims
	For the years ended December 31,										Prior year reserve reestimates			As of December 31, 2019
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2015		2016		2017		2018		2019
2015	$	3,558	$	3,611	$	3,553	$	3,537	$	3,520	$	(17	)	$	36	721,328
2016	—		3,959		3,993		3,955		3,951		(4		)	77		813,728
2017	—		—		4,475		4,617		4,612		(5		)	177		907,218
2018	—		—		—		4,747		4,851		104			340		807,012
2019	—		—		—		—		4,547					1,233		721,434
							Total		$	21,481	$	78
Reconciliation to total prior year reserve reestimates recognized by line
Prior year reserve reestimates for pre-2015 accident years											(36		)
Prior year reserve reestimates for ULAE											23
Other											—
Total prior year reserve reestimates											$	65

	Cumulative paid claims and allocated claims adjustment expenses, net of recoverables
	For the years ended December 31,
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2015		2016		2017		2018		2019
2015	$	2,586	$	3,296	$	3,399	$	3,458	$	3,484
2016	—		2,947		3,678		3,809		3,874
2017	—		—		3,227		4,246		4,435
2018	—		—		—		3,489		4,511
2019	—		—		—		—		3,314
							Total		$	19,618
All outstanding liabilities before 2015, net of recoverables									126
Liabilities for claims and claim adjustment expenses, net of recoverables									$	1,989



Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2019
	1 year		2 years		3 years		4 years		5 years
Homeowners insurance	74.5	%	18.9	%	3.1	%	1.4	%	0.7	%



Reconciliation of the net incurred and paid claims development tables above to the reserve for property and casualty insurance claims and claims expense
($ in millions)	As of December 31, 2019
Net outstanding liabilities
Allstate Protection
Auto insurance - liability coverage	$	13,489
Auto insurance - physical damage coverage	273
Homeowners insurance	1,989
Other personal lines	1,326
Commercial lines	1,010
Service Businesses	36
Discontinued Lines and Coverages ⁽¹⁾	1,286
ULAE	1,391
Net reserve for property and casualty insurance claims and claims expense	20,800

Recoverables
Allstate Protection
Auto insurance - liability coverage	5,891
Auto insurance - physical damage coverage	3
Homeowners insurance	214
Other personal lines	160
Commercial lines	130
Service Businesses	13
Discontinued Lines and Coverages	452
ULAE	49
Total recoverables	6,912
Gross reserve for property and casualty insurance claims and claims expense	$	27,712


⁽¹⁾	Discontinued Lines and Coverages includes business in run-off with most of the claims related to accident years more than 30 years ago. IBNR reserves represent $660 million of the total reserves as of December 31, 2019.

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

Allstate’s reserves for asbestos claims were $810 million and $866 million, net of reinsurance recoverables of $362 million and $400 million, as of December 31, 2019 and 2018, respectively. Reserves for environmental claims were $179 million and $170 million, net of reinsurance recoverables of $40 million and $39 million, as of December 31, 2019 and 2018, respectively. For further discussion of asbestos and environmental reserves, see Note 14.

Capital Structure - Outstanding preferred stock (Details) - USD ($) $ / shares in Units, $ in Millions			12 Months Ended
	Nov. 08, 2019	Aug. 08, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Class of Stock [Line Items]
Due after ten years			$ 5,141.0	$ 4,641.0
Preferred stock, shares issued (in shares)			92,500	79,800
Aggregate liquidation preference			$ 2,313.0	$ 1,995.0
Aggregate dividend payment			134.0	134.0	$ 116.0
Excess redemption price over carrying value			$ 37.0	$ 13.0
Series A
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)			11,500	11,500
Aggregate liquidation preference			$ 287.5	$ 287.5
Dividend rate			5.625%
Dividends payable, amount per share (in usd per share)			$ 1.41	$ 1.41	$ 1.41
Aggregate dividend payment			$ 16.0	$ 16.0	$ 16.0
Series C
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)			0	0
Aggregate liquidation preference			$ 0.0	$ 0.0
Dividend rate			6.75%
Dividends payable, amount per share (in usd per share)			$ 0	$ 1.69	$ 1.69
Aggregate dividend payment			$ 0.0	$ 26.0	$ 26.0
Series D
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)			0	5,400
Aggregate liquidation preference			$ 0.0	$ 135.0
Dividend rate			6.625%
Dividends payable, amount per share (in usd per share)			$ 1.66	$ 1.66	$ 1.66
Aggregate dividend payment			$ 9.0	$ 9.0	$ 9.0
Series E
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)			0	29,900
Aggregate liquidation preference			$ 0.0	$ 747.5
Dividend rate			6.625%
Dividends payable, amount per share (in usd per share)			$ 1.66	$ 1.66	$ 1.66
Aggregate dividend payment			$ 49.0	$ 49.0	$ 49.0
Series F
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)			0	10,000
Aggregate liquidation preference			$ 0.0	$ 250.0
Dividend rate			6.25%
Dividends payable, amount per share (in usd per share)			$ 1.56	$ 1.56	$ 1.56
Aggregate dividend payment			$ 16.0	$ 16.0	$ 16.0
Series G
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)			23,000	23,000
Aggregate liquidation preference			$ 575.0	$ 575.0
Dividend rate			5.625%
Dividends payable, amount per share (in usd per share)			$ 1.41	$ 1.41	$ 0
Aggregate dividend payment			$ 32.0	$ 18.0	$ 0.0
Series H
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)			46,000	0
Aggregate liquidation preference		$ 1,150.0	$ 1,150.0	$ 0.0
Dividend rate		5.10%	5.10%
Dividends payable, amount per share (in usd per share)			$ 1.28	$ 0	$ 0
Aggregate dividend payment			$ 12.0	$ 0.0	$ 0.0
Series I
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)			12,000	0
Aggregate liquidation preference	$ 300.0		$ 300.0	$ 0.0
Dividend rate	4.75%		4.75%
Dividends payable, amount per share (in usd per share)			$ 1.19	$ 0	$ 0
Aggregate dividend payment			$ 0.0	$ 0.0	$ 0.0
3.850% Senior Notes, due 2049
Class of Stock [Line Items]
Due after ten years			$ 500.0	$ 0.0

Schedule II - Condensed Financial Information of Registrant - Narrative (Details) - USD ($) $ in Millions			12 Months Ended
	Jun. 18, 2019	Apr. 11, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jun. 19, 2019	Dec. 18, 2018	Oct. 11, 2018
Condensed Financial Information of Registrant
Interest paid on debt			$ 312	$ 330	$ 332
Allstate Corporation
Condensed Financial Information of Registrant
Notes due to subsidiaries			1,000	1,250
Repayment of notes due to subsidiaries			1,250	250	50
Interest paid on debt			$ 312	$ 330	$ 331
Kennett Capital Inc \| Subsidiaries \| Allstate Corporation
Condensed Financial Information of Registrant
Notes due to subsidiaries						$ 1,000	$ 1,000	$ 250
Note stated interest rate (as a percent)						2.63%	3.03%	2.49%
Repayment of notes due to subsidiaries	$ 1,000	$ 250

Benefit Plans

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Benefit Plans



Note 17	Benefit Plans

Pension and other postretirement plans

Defined benefit pension plans cover most full-time employees, certain part-time employees and employee-agents. Benefits under the pension plans are based upon the employee’s length of service, eligible annual compensation and, prior to January 1, 2014, either a cash balance or final average pay formula. A cash balance formula applies to all eligible employees hired after August 1, 2002. Eligible employees hired before August 1, 2002 chose between the cash balance formula and the final average pay formula. In July 2013, the Company amended its primary plans effective January 1, 2014 to introduce a new cash balance formula to replace the previous formulas (including the final average pay formula and the previous cash balance formula) under which eligible employees accrue benefits. The Company merged two of its qualified pension plans effective March 31, 2019.

The Company also provides a medical coverage subsidy for eligible employees hired before January 1, 2003, including their eligible dependents, when they retire and certain life insurance benefits for eligible retirees (“postretirement benefits”). In July 2013, the Company amended the plan to eliminate the life insurance benefits effective January 1, 2014 for current eligible employees and effective January 1, 2016 for eligible retirees who retired after 1989. The Company continues to pay life insurance premiums for certain retiree plaintiffs subject to a court order requiring it to do so until such time as their lawsuit seeking to keep their life insurance benefits intact is resolved. Qualified employees may become eligible for a medical subsidy if they retire in accordance with the terms of the applicable plans and are continuously insured under the Company’s group plans or other approved plans in accordance with the plan’s participation requirements. The Company shares the cost of retiree medical

benefits with non Medicare-eligible retirees based on years of service, with the Company’s share being subject to a 5% limit on future annual medical cost inflation after retirement. For Medicare-eligible retirees, the Company provides a fixed Company contribution based on years of service and other factors, which is not subject to adjustments for inflation.

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

Obligations and funded status

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



Change in projected benefit obligation, plan assets and funded status
	As of December 31,
	Pension benefits						Postretirement benefits
($ in millions)	2019			2018			2019			2018
Change in projected benefit obligation
Benefit obligation, beginning of year	$	6,224		$	6,815		$	375		$	386
Service cost	117			110			8			7
Interest cost	240			255			14			15
Participant contributions	—			—			15			13
Actuarial losses (gains)	927			(255		)	19			(4		)
Benefits paid	(356		)	(646		)	(39		)	(35		)
Translation adjustment and other	(13		)	(55		)	5			(7		)
Benefit obligation, end of year	$	7,139		$	6,224		$	397		$	375

Change in plan assets
Fair value of plan assets, beginning of year	$	5,299		$	6,284
Actual return on plan assets	1,235			(300		)
Employer contribution	27			16
Benefits paid	(356		)	(646		)
Translation adjustment and other	(13		)	(55		)
Fair value of plan assets, end of year	$	6,192		$	5,299

Funded status ⁽¹⁾	$	(947	)	$	(925	)	$	(397	)	$	(375	)

Amounts recognized in AOCI
Unamortized pension and other postretirement prior service credit	$	(142	)	$	(198	)	$	(13	)	$	(16	)


⁽¹⁾	The funded status is recorded within other liabilities and accrued expenses on the Consolidated Statements of Financial Position.



Changes in items not yet recognized as a component of net cost for pension and other postretirement plans
($ in millions)	Pension benefits			Postretirement benefits
Items not yet recognized as a component of net cost – December 31, 2018	$	(198	)	$	(16	)
Prior service credit amortized to net cost	56			3
Items not yet recognized as a component of net cost – December 31, 2019	$	(142	)	$	(13	)

The prior service credit is recognized as a component of net cost for pension and other postretirement plans amortized over the average remaining service period of active employees expected to receive benefits. The prior service credit that will be amortized to net cost for pension and postretirement plans in 2020 is estimated to be $56 million and $3 million, respectively.

The accumulated benefit obligation (“ABO”) for all defined benefit pension plans was $7.02 billion and $6.15 billion as of December 31, 2019 and 2018, respectively. The ABO is the actuarial present value of all benefits attributed by the pension benefit formula

to employee service rendered at the measurement date. However, it differs from the PBO due to the exclusion of an assumption as to future compensation levels.

The PBO, ABO and fair value of plan assets for the Company’s pension plans with an ABO in excess of plan assets were $6.73 billion, $6.62 billion and $5.79 billion, respectively, as of December 31, 2019 and $5.99 billion, $5.93 billion and $5.07 billion, respectively, as of December 31, 2018. Included in the accrued benefit cost of the pension benefits are certain unfunded non-qualified plans with accrued benefit costs of $137 million and $135 million for 2019 and 2018, respectively.



Components of net cost (benefit) for pension and other postretirement plans
	For the years ended December 31,
	Pension benefits									Postretirement benefits									Total Pension and Postretirement Benefits
($ in millions)	2019			2018			2017			2019			2018			2017			2019			2018			2017
Service cost	$	117		$	110		$	111		$	8		$	7		$	8		$	125		$	117		$	119
Interest cost	240			255			254			14			15			15			254			270			269
Expected return on plan assets	(403		)	(427		)	(419		)	—			—			—			(403		)	(427		)	(419		)
Amortization of prior service credit	(56		)	(56		)	(56		)	(3		)	(21		)	(25		)	(59		)	(77		)	(81		)
Costs and expenses	(102		)	(118		)	(110		)	19			1			(2		)	(83		)	(117		)	(112		)
Remeasurement of projected benefit obligation	927			(255		)	406			19			(4		)	8			946			(259		)	414
Remeasurement of plan assets	(832		)	727			(631		)	—			—			—			(832		)	727			(631		)
Remeasurement gains and losses	95			472			(225		)	19			(4		)	8			114			468			(217		)
Total net (benefit) cost	$	(7	)	$	354		$	(335	)	$	38		$	(3	)	$	6		$	31		$	351		$	(329	)

The service cost component is the actuarial present value of the benefits attributed by the plans’ benefit formula to services rendered by the employees during the period.

Interest cost is the increase in the PBO in the period due to the passage of time at the discount rate. Interest cost fluctuates as the discount rate changes and is also impacted by the related change in the size of the PBO.

The expected return on plan assets is determined as the product of the expected long-term rate of return on plan assets and the fair value of plan assets.

Pension and other postretirement service cost, interest cost, expected return on plan assets and

amortization of prior service credit are reported in property and casualty insurance claims and claims expense, operating costs and expenses, net investment income and (if applicable) restructuring and related charges on the Consolidated Statements of Operations.

Remeasurement gains and losses relate to changes in discount rates, the differences between actual return on plan assets and the expected long-term rate of return on plan assets, and differences between actual plan experience and actuarial assumptions.



Weighted average assumptions used to determine net pension cost and net postretirement benefit cost
	For the years ended December 31,
	Pension benefits						Postretirement benefits
($ in millions)	2019		2018		2017		2019		2018		2017
Discount rate	3.70	%	4.06	%	3.96	%	3.61	%	3.95	%	3.91	%
Expected long-term rate of return on plan assets	7.34		7.33		7.32		n/a		n/a		n/a



Weighted average assumptions used to determine benefit obligations
	For the years ended December 31,
	Pension benefits				Postretirement benefits
	2019		2018		2019		2018
Discount rate	3.31	%	4.31	%	3.27	%	4.22	%

The weighted average health care cost trend rate used in measuring the accumulated postretirement benefit cost is 7.0% for 2020, gradually declining to 4.5% in 2035 and remaining at that level thereafter.

Pension plan assets In general, the Company’s pension plan assets are managed in accordance with investment policies approved by pension investment committees. The purpose of the policies is to ensure the plans’ long-term ability to meet benefit obligations by prudently investing plan assets and Company contributions, while taking into consideration regulatory and legal requirements and current market conditions. The investment policies are reviewed periodically and specify target plan asset allocation by asset category. In addition, the policies specify various

asset allocation and other risk limits. The target asset allocation takes the plans’ funding status into consideration, among other factors, including anticipated demographic changes or liquidity requirements that may affect the funding status such as the potential impact of lump sum settlements as well as existing or expected market conditions. In general, the allocation has a lower overall investment risk when a plan is in a stronger funded status position since there is less economic incentive to take risk to increase the expected returns on the plan assets. The pension plans’ asset exposure within each asset category is tracked against widely accepted established benchmarks for each asset class with limits on variation from the benchmark established in the

investment policy. Pension plan assets are regularly monitored for compliance with these limits and other risk limits specified in the investment policies.



Weighted average target asset allocation and actual percentage of plan assets by asset category
	As of December 31, 2019
	Target asset allocation ⁽¹⁾	Actual percentage of plan assets
Pension plan’s asset category	2019	2019		2018
Equity securities ⁽²⁾	37 - 55%	50	%	47	%
Fixed income securities	37 - 48%	38		41
Limited partnership interests	1 - 15%	10		9
Short-term investments and other	—	2		3
Total without securities lending ⁽³⁾		100	%	100	%


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


⁽²⁾	The actual percentage of plan assets for equity securities includes 1% of private equity investments in both 2019 and 2018 that are subject to the limited partnership interests target allocation and none and 4% of fixed income mutual funds in 2019 and 2018, respectively, that are subject to the fixed income securities target allocation.


⁽³⁾	Securities lending collateral reinvestment of $258 million and $208 million is excluded from the table above in 2019 and 2018, respectively.

The target asset allocation for an asset category may be achieved either through direct investment holdings, through replication using derivative instruments (e.g., futures or swaps) or net of hedges using derivative instruments to reduce exposure to an asset category. The net notional amount of derivatives used for replication and non-hedging strategies is limited to 115% of total plan assets. Market performance of the different asset categories may, from time to time, cause deviation from the target

asset allocation. The asset allocation mix is reviewed on a periodic basis and rebalanced to bring the allocation within the target ranges.

Outside the target asset allocation, the pension plans participate in a securities lending program to enhance returns. As of December 31, 2019, U.S. government fixed income securities and U.S. equity securities are lent out and cash collateral is invested in short-term investments.



Fair values of pension plan assets as of December 31, 2019
($ in millions)	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Balance as of December 31, 2019
Equity securities	$	216		$	45		$	—		$	261
Fixed income securities:
U.S. government and agencies	237			1,096			—			1,333
Corporate	—			1,060			—			1,060
Short-term investments	128			252			—			380
Free-standing derivatives:
Assets	—			5			—			5
Liabilities	(2		)	(17		)	—			(19		)
Total plan assets at fair value	$	579		$	2,441		$	—		3,020
% of total plan assets at fair value	19.2		%	80.8		%	—		%	100.0		%

Investments measured using the net asset value practical expedient										3,418
Securities lending obligation ⁽¹⁾										(272		)
Derivatives counterparty and cash collateral netting										9
Other net plan assets ⁽²⁾										17
Total reported plan assets										$	6,192

⁽¹⁾

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


⁽²⁾	Other net plan assets represent cash and cash equivalents, interest and dividends receivable and net receivables related to settlements of investment transactions, such as purchases and sales.



Fair values of pension plan assets as of December 31, 2018
($ in millions)	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Balance as of December 31, 2018
Equity securities	$	51		$	265		$	—		$	316
Fixed income securities:
U.S. government and agencies	172			509			—			681
Corporate	—			1,479			5			1,484
Short-term investments	122			198			—			320
Free-standing derivatives:
Assets	—			19			—			19
Liabilities	—			(11		)	—			(11		)
Total plan assets at fair value	$	345		$	2,459		$	5		2,809
% of total plan assets at fair value	12.3		%	87.5		%	0.2		%	100.0		%

Investments measured using the net asset value practical expedient										2,687
Securities lending obligation										(222		)
Derivatives counterparty and cash collateral netting										(6		)
Other net plan assets										31
Total reported plan assets										$	5,299

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



Rollforward of Level 3 plan assets during December 31, 2019
			Actual return on plan assets:
($ in millions)	Balance as of December 31, 2018		Relating to assets sold during the period		Relating to assets still held at the reporting date		Purchases, sales and settlements, net			Net transfers in and/or (out) of Level 3		Balance as of December 31, 2019
Equity securities	$	—	$	—	$	—	$	—		$	—	$	—
Fixed income securities:
Corporate	5		—		—		(5		)	—		—
Total Level 3 plan assets	$	5	$	—	$	—	$	(5	)	$	—	$	—



Rollforward of Level 3 plan assets during December 31, 2018
			Actual return on plan assets:
($ in millions)	Balance as of December 31, 2017		Relating to assets sold during the period		Relating to assets still held at the reporting date		Purchases, sales and settlements, net			Net transfers in and/or (out) of Level 3			Balance as of December 31, 2018
Equity securities	$	29	$	—	$	3	$	—		$	(32	)	$	—
Fixed income securities:
Corporate	10		—		—		(5		)	—			5
Total Level 3 plan assets	$	39	$	—	$	3	$	(5	)	$	(32	)	$	5



Rollforward of Level 3 plan assets during December 31, 2017
			Actual return on plan assets:
($ in millions)	Balance as of December 31, 2016		Relating to assets sold during the period		Relating to assets still held at the reporting date		Purchases, sales and settlements, net		Net transfers in and/or (out) of Level 3		Balance as of December 31, 2017
Equity securities	$	—	$	—	$	—	$	29	$	—	$	29
Fixed income securities:
Corporate	10		—		—		—		—		10
Total Level 3 plan assets	$	10	$	—	$	—	$	29	$	—	$	39

The expected long-term rate of return on plan assets reflects the average rate of earnings expected on plan assets. The Company’s assumption for the expected long-term rate of return on plan assets is reviewed annually giving consideration to appropriate financial data including, but not limited to, the plan asset allocation, forward-looking expected returns for the period over which benefits will be paid, historical returns on plan assets and other relevant market data. Given the long-term forward-looking nature of this assumption, the actual returns in any one year do not immediately result in a change. In giving consideration to the targeted plan asset allocation, the Company evaluated returns using the same sources it has used historically which include: historical average asset class returns from an independent nationally recognized vendor of this type of data blended together using the asset allocation policy weights for the Company’s pension plans; asset class return forecasts from a large global independent asset management firm that specializes in providing multi-asset class investment fund products which were blended together using the asset allocation policy weights; and expected portfolio returns from a proprietary simulation methodology of a widely recognized external investment consulting firm

that performs asset allocation and actuarial services for corporate pension plan sponsors. This same methodology has been applied on a consistent basis each year. All of these were consistent with the Company’s weighted average long-term rate of return on plan assets assumption of 7.34% used for 2019 and an estimate of 7.08% that will be used for 2020. As of the 2019 measurement date, the arithmetic average of the annual actual return on plan assets for the most recent 10 and 5 years was 10.0% and 9.6%, respectively.

Cash flows There was no required cash contribution necessary to satisfy the minimum funding requirement under the IRC for the tax qualified pension plan for the year ended December 31, 2019.

The Company currently plans to contribute $25 million to its unfunded non-qualified plans and zero and $4 million to its primary and other qualified funded pension plans, respectively, in 2020.

The Company contributed $24 million and $22 million to the postretirement benefit plans in 2019 and 2018, respectively. Contributions by participants were $15 million and $13 million in 2019 and 2018, respectively.



Estimated future benefit payments expected to be paid in the next 10 years
	As of December 31, 2019
($ in millions)	Pension benefits		Postretirement benefits
2020	$	600	$	23
2021	629		24
2022	636		26
2023	634		27
2024	626		27
2025-2029	2,401		136
Total benefit payments	$	5,526	$	263

Allstate 401(k) Savings Plan

Employees of the Company, with the exception of those employed by the Company’s international, SquareTrade, InfoArmor and Esurance subsidiaries, are eligible to become members of the Allstate 401(k) Savings Plan (“Allstate Plan”). The Company’s contributions are based on the Company’s matching obligation. The Company is responsible for funding its anticipated contribution to the Allstate Plan, and has used the remaining ESOP shares to pre-fund a portion of the contribution. In connection with the Allstate Plan, the Company had a note from the ESOP. On

December 31, 2019, the note matured and the remaining principal balance of $2 million was repaid. The Company records dividends on the ESOP shares in retained income and all the shares held by the ESOP are included in basic and diluted weighted average common shares outstanding.

The Company’s contribution to the Allstate Plan was $93 million, $89 million and $81 million in 2019, 2018 and 2017, respectively. These amounts were reduced by the ESOP benefit.



ESOP benefit
	For the years December 31,
($ in millions)	2019			2018			2017
Interest expense recognized by ESOP	$	—		$	—		$	—
Less: dividends accrued on ESOP shares	(1		)	(1		)	(1		)
Cost of shares allocated	3			—			3
Compensation expense	2			(1		)	2
Reduction of defined contribution due to ESOP	43			1			38
ESOP benefit	$	(41	)	$	(2	)	$	(36	)

The Company made $2 million, zero and $1 million in contributions to the ESOP in 2019, 2018 and 2017, respectively. As of December 31, 2019, there were 0.4 million, 39 million and zero of the remaining ESOP shares that have been committed to be released, allocated and unallocated, respectively.

Allstate’s Canadian, SquareTrade, Esurance and Answer Financial subsidiaries sponsor defined contribution plans for their eligible employees. Expense for these plans was $15 million, $15 million and $12 million in 2019, 2018 and 2017, respectively. Effective January 1, 2020, Answer Financial employees will be included in the Allstate Plan.

Reinsurance and Indemnification - Excess contract (Details) - USD ($) $ in Millions	7 Months Ended	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2019
Reinsurance Retention Policy [Line Items]
Limit of aggregate losses under aggregate excess agreement		$ 3,400
Florida Excess Catastrophe Reinsurance Agreement
Reinsurance Retention Policy [Line Items]
Limit of aggregate losses under aggregate excess agreement	$ 54
Term of catastrophe reinsurance agreement contract		2 years
Florida Excess Catastrophe Reinsurance Agreement, Personal Property Lines
Reinsurance Retention Policy [Line Items]
Limit of aggregate losses under aggregate excess agreement		$ 249
Retention amount for catastrophe reinsurance agreement contracts		$ 20
Retention percentage of reinsurance limit		100.00%
Co-participation percentage		10.00%

Equity Incentive Plans - Narrative (Details) - USD ($) shares in Millions, $ in Millions		12 Months Ended
	Feb. 17, 2014	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Equity Incentive Plans
Compensation expense		$ 105	$ 125	$ 106
Share-based compensation arrangement by share-based payment award, recognized tax benefits		17	22	22
Cash received from the exercise of options		154	92	178
Tax benefit realized on options exercised and stock unrestricted		43	$ 28	$ 96
Unrecognized compensation cost related to nonvested awards		$ 79
Common stock authorized for stock-based awards (in shares)		110.8
Common stock reserved for further issuance (in shares)		24.0
Nonqualified stock options
Equity Incentive Plans
Unrecognized compensation cost related to nonvested awards		$ 29
Expected period of recognition of unrecognized compensation cost		1 year 8 months 4 days
Restricted stock units
Equity Incentive Plans
Unrecognized compensation cost related to nonvested awards		$ 21
Expected period of recognition of unrecognized compensation cost		1 year 8 months 8 days
Performance stock awards
Equity Incentive Plans
Unrecognized compensation cost related to nonvested awards		$ 29
Expected period of recognition of unrecognized compensation cost		1 year 6 months 18 days
Stock options
Equity Incentive Plans
Vesting period of options granted		3 years
Portion of awards vesting and unrestricting on second anniversary of grant date (as a percent)	50.00%
Portion of awards vesting and unrestricting on third and fourth anniversaries of grant date (as a percent)	25.00%
Expiration term for options		10 years

Derivative Financial Instruments and Off-balance sheet Financial Instruments

12 Months Ended

Dec. 31, 2019

Derivative Financial Instruments and Off-balance sheet Financial Instruments

Derivative Financial Instruments and Off-balance sheet Financial Instruments



Note 7	Derivative Financial Instruments and Off-balance Sheet Financial Instruments

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

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, index total return 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, index total return swaps, 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. Fixed income index total return swaps are used to offset valuation losses in the fixed income portfolio during periods of declining market values. Credit default swaps are typically used to mitigate the credit risk within the Property-Liability fixed income portfolio. Equity index total return swaps, 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.

Asset-liability management is a risk management practice that is principally employed by Allstate Life and Allstate Annuities 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. Fixed income index total return swaps are used to offset valuation losses in the portfolio during periods of declining market values. Credit default swaps are typically used to mitigate the credit risk within the Allstate Life and Allstate Annuities fixed income portfolios. Futures and options are used for hedging the equity exposure contained in equity indexed life and annuity product contracts that offer equity returns to contractholders. In addition, the Company uses equity index total return swaps, options and futures to offset valuation losses in the equity portfolio during periods of declining equity market values. Foreign currency swaps and forwards are primarily used 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 returns linked to equity indices 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. The Company 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. The fair value of the hedged liability is reported in contractholder funds in the Consolidated Statements of Financial Position. The impact from results of the fair value hedge is reported in interest credited to

contractholder funds in the Consolidated Statements of Operations.

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

Fair value, which is equal to the carrying value, is the estimated amount that the Company would receive or pay to terminate the derivative contracts at the reporting date. The carrying value amounts for OTC derivatives are further adjusted for the effects, if any, of enforceable master netting agreements and are presented on a net basis, by counterparty agreement, in the Consolidated Statements of Financial Position.

For those derivatives which qualify and have been designated as fair value accounting hedges, net income includes the changes in the fair value of both the derivative instrument and the hedged risk. For cash flow hedges, gains and losses are amortized from AOCI 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.

Fair value hedges The Company had one derivative designated as a fair value hedge as of December 31, 2019 and 2018.

Cash flow hedges The Company had no derivatives designated as a cash flow hedge as of December 31, 2019 and 2018.



Summary of the volume and fair value positions of derivative instruments as of December 31, 2019
		Volume ⁽¹⁾
($ in millions, except number of contracts)	Balance sheet location	Notional amount		Number of contracts	Fair value, net			Gross asset		Gross liability
Asset derivatives
Derivatives designated as fair value accounting hedging instruments
Other	Other assets	$	2	n/a	$	—		$	—	$	—
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Futures	Other assets	—		3,668	—			—		—
Equity and index contracts
Options	Other investments	—		5,539	140			140		—
Futures	Other assets	—		1,533	1			1		—
Total return index contracts
Total return swap agreements - fixed income	Other investments	56		n/a	1			1		—
Credit default contracts
Credit default swaps – buying protection	Other investments	17		n/a	—			—		—
Subtotal		73		10,740	142			142		—
Total asset derivatives		$	75	10,740	$	142		$	142	$	—

Liability derivatives
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other liabilities & accrued expenses	$	34	n/a	$	—		$	—	$	—
Futures	Other liabilities & accrued expenses	—		1,089	—			—		—
Equity and index contracts
Options	Other liabilities & accrued expenses	—		5,400	(68		)	—		(68		)
Futures	Other liabilities & accrued expenses	—		3	—			—		—
Total return index contracts
Total return swap agreements - fixed income	Other liabilities & accrued expenses	119		n/a	—			—		—
Total return swap agreements - equity index	Other liabilities & accrued expenses	187		n/a	11			11		—
Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	745		n/a	19			28		(9		)
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds	161		n/a	(18		)	—		(18		)
Guaranteed withdrawal benefits	Contractholder funds	205		n/a	(14		)	—		(14		)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds	1,791		n/a	(430		)	—		(430		)
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	152		n/a	(7		)	—		(7		)
Credit default swaps – selling protection	Other liabilities & accrued expenses	9		n/a	—			—		—
Total liability derivatives		3,403		6,492	(507		)	$	39	$	(546	)
Total derivatives		$	3,478	17,232	$	(365	)


⁽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)



Summary of the volume and fair value positions of derivative instruments as of December 31, 2018
		Volume
($ in millions, except number of contracts)	Balance sheet location	Notional amount		Number of contracts	Fair value, net			Gross asset		Gross liability
Asset derivatives
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other investments	$	6	n/a	$	—		$	—	$	—
Futures	Other assets	—		1,330	1			1		—
Equity and index contracts
Options	Other investments	—		11,131	115			115		—
Futures	Other assets	—		1,453	1			1		—
Total return index contracts
Total return swap agreements - fixed income	Other investments	7		n/a	—			—		—
Total return swap agreements - equity index	Other investments	61		n/a	(2		)	—		(2		)
Foreign currency contracts
Foreign currency forwards	Other investments	258		n/a	10			11		(1		)
Credit default contracts
Credit default swaps – buying protection	Other investments	136		n/a	(1		)	2		(3		)
Other contracts
Other	Other assets	2		n/a	—			—		—
Total asset derivatives		$	470	13,914	$	124		$	130	$	(6	)

Liability derivatives
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other liabilities & accrued expenses	$	31	n/a	$	1		$	1	$	—
Futures	Other liabilities & accrued expenses	—		1,300	(1		)	—		(1		)
Equity and index contracts
Options and futures	Other liabilities & accrued expenses	—		10,956	(50		)	—		(50		)
Total return index contracts
Total return swap agreements - fixed income	Other liabilities & accrued expenses	38		n/a	(1		)	—		(1		)
Total return swap agreements - equity index	Other liabilities & accrued expenses	71		n/a	(4		)	—		(4		)
Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	341		n/a	10			11		(1		)
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds	169		n/a	(25		)	—		(25		)
Guaranteed withdrawal benefits	Contractholder funds	210		n/a	(14		)	—		(14		)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds	1,770		n/a	(185		)	—		(185		)
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	40		n/a	—			—		—
Credit default swaps – selling protection	Other liabilities & accrued expenses	5		n/a	—			—		—
Total liability derivatives		2,675		12,256	(269		)	$	12	$	(281	)
Total derivatives		$	3,145	26,170	$	(145	)



Gross and net amounts for OTC derivatives ⁽¹⁾
				Offsets
($ in millions)	Gross amount			Counter- party netting			Cash collateral (received) pledged			Net amount on balance sheet			Securities collateral (received) pledged		Net amount
December 31, 2019
Asset derivatives	$	40		$	(39	)	$	(1	)	$	—		$	—	$	—
Liability derivatives	(16		)	39			(27		)	(4		)	—		(4		)

December 31, 2018
Asset derivatives	$	25		$	(18	)	$	(5	)	$	2		$	—	$	2
Liability derivatives	(12		)	18			(12		)	(6		)	—		(6		)


⁽¹⁾	All OTC derivatives are subject to enforceable master netting agreements.



Gains (losses) from valuation and settlements reported on derivatives not designated as accounting hedges
($ in millions)	Realized capital gains (losses)			Life contract benefits			Interest credited to contractholder funds			Operating costs and expenses			Total gain (loss) recognized in net income on derivatives
2019
Interest rate contracts	$	51		$	—		$	—		$	—		$	51
Equity and index contracts	(116		)	—			63			40			(13		)
Embedded derivative financial instruments	—			7			(70		)	—			(63		)
Foreign currency contracts	8			—			—			—			8
Credit default contracts	(8		)	—			—			—			(8		)
Total return swaps - fixed income	14			—			—			—			14
Total return swaps - equity index	36			—			—			—			36
Total	$	(15	)	$	7		$	(7	)	$	40		$	25

2018
Interest rate contracts	$	(2	)	$	—		$	—		$	—		$	(2	)
Equity and index contracts	21			—			(24		)	(21		)	(24		)
Embedded derivative financial instruments	—			(5		)	67			—			62
Foreign currency contracts	29			—			—			(1		)	28
Credit default contracts	2			—			—			—			2
Total return swaps - fixed income	(1		)	—			—			—			(1		)
Total return swaps - equity index	(6		)	—			—			—			(6		)
Total	$	43		$	(5	)	$	43		$	(22	)	$	59

2017
Equity and index contracts	$	(15	)	$	—		$	47		$	28		$	60
Embedded derivative financial instruments	—			9			(6		)	—			3
Foreign currency contracts	(27		)	—			—			6			(21		)
Credit default contracts	(4		)	—			—			—			(4		)
Total	$	(46	)	$	9		$	41		$	34		$	38

The Company manages its exposure to credit risk by utilizing highly rated counterparties, establishing risk control limits, executing legally enforceable master netting agreements (“MNAs”) and obtaining collateral where appropriate. The Company uses MNAs for OTC derivative transactions that permit either party to net payments due for transactions and collateral is either pledged or obtained when certain predetermined exposure limits are exceeded. As of December 31, 2019, counterparties pledged $31 million in collateral to the Company, and the Company pledged $3 million in cash and securities to counterparties which includes $3 million of collateral posted under MNAs for contracts

containing credit-risk contingent provisions that are in a liability position.

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.



OTC derivatives counterparty credit exposure by counterparty credit rating
($ in millions)	2019							2018
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⁾
A+	6	868		29		—		3	643		19		1
A	—	—		—		—		2	121		1		—
Total	6	$	868	$	29	$	—	5	$	764	$	20	$	1


⁽¹⁾	Allstate uses the lower of S&P’s or Moody’s long-term debt issuer ratings.


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

For certain exchange traded and cleared derivatives, margin deposits are required as well as daily cash settlements of margin accounts. As of December 31, 2019, the Company pledged $48 million in the form of margin deposits.

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

Certain of the Company’s derivative instruments contain credit-risk-contingent termination events, cross-default provisions and credit support annex agreements. Credit-risk-contingent termination events

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

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



($ in millions)	2019			2018
Gross liability fair value of contracts containing credit-risk-contingent features	$	16		$	11
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(11		)	(5		)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	(3		)	(2		)
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$	2		$	4

Off-balance sheet financial instruments



Contractual amounts of off balance sheet financial instruments
	As of December 31,
($ in millions)	2019		2018
Commitments to invest in limited partnership interests	$	2,837	$	3,028
Private placement commitments	68		47
Other loan commitments	189		233

In the preceding table, the contractual amounts represent the amount at risk if the contract is fully drawn upon, the counterparty defaults and the value of any underlying security becomes worthless. Unless noted otherwise, the Company does not require

collateral or other security to support off-balance sheet financial instruments with credit risk.

Commitments to invest in limited partnership interests represent agreements to acquire new or additional participation in certain limited partnership

investments. The Company enters into these agreements in the normal course of business. Because the investments in limited partnerships are not actively traded, it is not practical to estimate the fair value of these commitments.

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

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

Commitments, Guarantees and Contingent Liabilities - Florida and Louisiana Citizens (Details)	12 Months Ended
	Dec. 31, 2019
FL Citizens
Loss Contingencies
Assessment rate, percent of deficit or prior year premiums	2.00%
Surcharge on policies, deadline for filing prior to imposing	15 days
Emergency assessment maximum percentage of premiums subsequent years, FL OIR	0.00%
LA Citizens
Loss Contingencies
Assessment rate, percent of deficit or prior year premiums	10.00%

Company Restructuring

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Company Restructuring



Note 13	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 the following costs related to these programs:


•	Employee - severance and relocation benefits


•	Exit - contract termination penalties

The expenses related to these activities are included in the Consolidated Statements of Operations as restructuring and related charges, and totaled $41 million, $67 million and $96 million in 2019, 2018 and 2017, respectively. Restructuring expenses in 2019 primarily related to realignment of certain employees to centralized talent centers as well as claims reorganization initiatives.



Restructuring activity during the period
($ in millions)	Employee costs			Exit costs			Total liability
Restructuring liability as of December 31, 2018	$	29		$	15		$	44
Expense incurred	43			7			50
Adjustments to liability	(9		)	—			(9		)
Payments and non-cash pension settlements	(49		)	(14		)	(63		)
Restructuring liability as of December 31, 2019	$	14		$	8		$	22

As of December 31, 2019, the cumulative amount incurred to date for active programs related to employee severance, relocation benefits and post-exit

rent expenses totaled $112 million for employee costs and $12 million for exit costs.

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 4,847	$ 2,160	$ 3,554
Changes in:
Unrealized net capital gains and losses	1,889	(754)	319
Unrealized foreign currency translation adjustments	(10)	(48)	45
Unamortized pension and other postretirement prior service credit	(47)	(59)	(52)
Other comprehensive income (loss), after-tax	1,832	(861)	312
Comprehensive income	$ 6,679	$ 1,299	$ 3,866

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Goodwill
Goodwill allocated to segments		$ 2,545	$ 2,530
Impairment of goodwill and purchased intangibles	$ 125	106	0	$ 125
Allstate Protection
Goodwill
Goodwill allocated to segments		810	810
Service Businesses
Goodwill
Goodwill allocated to segments		1,464	1,449
Allstate Life
Goodwill
Goodwill allocated to segments		175	175
Allstate Benefits
Goodwill
Goodwill allocated to segments		$ 96	$ 96

Reserve for Life-Contingent Contract Benefits and Contractholder Funds - Variable annuity contracts with guarantees (Details) - Variable annuities - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Variable annuity contracts with guarantees
Account balances of separate accounts with guarantees, invested in equity, fixed income and balanced mutual funds	$ 2,680	$ 2,470
Account balances of separate accounts with guarantees, invested in money market mutual funds	253	245
In the event of death
Variable annuity contracts with guarantees
Separate account value	2,928	2,711
Net amount at risk	$ 373	$ 605
Average attained age of contractholders	71 years	71 years
At annuitization (includes income benefit guarantees)
Variable annuity contracts with guarantees
Separate account value	$ 848	$ 778
Net amount at risk	173	264
For cumulative periodic withdrawals
Variable annuity contracts with guarantees
Separate account value	190	190
Net amount at risk	13	16
Accumulation at specified dates
Variable annuity contracts with guarantees
Separate account value	123	129
Net amount at risk	$ 15	$ 26
Weighted average waiting period until guarantee date	4 years	4 years

Reporting Segments - Total assets and investments (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information
Assets	$ 119,950	$ 112,249
Investments	88,362	81,260
Property-Liability
Segment Reporting Information
Assets	67,243	61,947
Investments	48,414	43,634
Service Businesses
Segment Reporting Information
Assets	5,746	5,473
Investments	1,544	1,203
Allstate Life
Segment Reporting Information
Assets	14,771	13,613
Investments	11,914	10,809
Allstate Benefits
Segment Reporting Information
Assets	2,915	2,822
Investments	1,941	1,809
Allstate Annuities
Segment Reporting Information
Assets	26,914	26,798
Investments	22,221	22,336
Corporate and Other
Segment Reporting Information
Assets	2,361	1,596
Investments	$ 2,328	$ 1,469

Reinsurance and Indemnification - Mandatory FHCF Contracts (Details) $ in Millions	7 Months Ended	12 Months Ended
	Dec. 31, 2019 USD ($) hurricane	Dec. 31, 2019 USD ($)
Reinsurance Retention Policy [Line Items]
Limit of aggregate losses under aggregate excess agreement		$ 3,400
Florida Excess Catastrophe Reinsurance Agreement
Reinsurance Retention Policy [Line Items]
Catastrophe reinsurance loss amount		$ 151
Catastrophe reinsurance aggregate, loss limit per contract year, percent		90.00%
Catastrophe reinsurance loss amount, placement		$ 136
Limit of aggregate losses under aggregate excess agreement	$ 54
Percent eligible for reimbursement		10.00%
Florida Excess Catastrophe Reinsurance Agreement, Two Largest Hurricanes
Reinsurance Retention Policy [Line Items]
Number of hurricanes \| hurricane	2
Limit of aggregate losses under aggregate excess agreement	$ 54
Retention amount for catastrophe reinsurance agreement contracts	$ 18

Reporting Segments - Narrative (Details) $ in Millions	12 Months Ended
Reporting Segments - Narrative (Details) $ in Millions	Dec. 31, 2019 USD ($) segment item	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Segment Reporting Information
Number of reportable segments \| segment	7
Allstate Protection
Segment Reporting Information
Premium earned as percentage of consolidated revenues	78.00%
Number of states in which entity operates \| item	50
Minimum percentage of premiums to be considered as significant	5.00%
Revenues from external customers generated outside the United States	$ 1,370	$ 1,200	$ 1,130
Allstate Life
Segment Reporting Information
Number of states in which entity operates \| item	50
Minimum percentage of premiums to be considered as significant	5.00%
Consumer product protection plans \| Service Businesses
Segment Reporting Information
Insurance commissions and fees	$ 633	503	295
Consumer product protection plans \| Service Businesses \| Non-US
Segment Reporting Information
Insurance commissions and fees	$ 95	$ 61	$ 35

Reinsurance and Indemnification

12 Months Ended

Dec. 31, 2019

Reinsurance Disclosures [Abstract]

Reinsurance and Indemnification



Note 10	Reinsurance and Indemnification



Effects of reinsurance and indemnification on property and casualty premiums written and earned and life premiums and contract charges
	For the years ended December 31,
($ in millions)	2019			2018			2017
Property and casualty insurance premiums written
Direct	$	37,976		$	35,895		$	33,685
Assumed	95			99			64
Ceded	(1,117		)	(1,008		)	(1,007		)
Property and casualty insurance premiums written, net of recoverables	$	36,954		$	34,986		$	32,742

Property and casualty insurance premiums earned
Direct	$	37,104		$	34,977		$	33,221
Assumed	94			87			50
Ceded	(1,122		)	(1,016		)	(971		)
Property and casualty insurance premiums earned, net of recoverables	$	36,076		$	34,048		$	32,300

Life premiums and contract charges
Direct	$	2,074		$	2,001		$	1,894
Assumed	712			754			787
Ceded	(285		)	(290		)	(303		)
Life premiums and contract charges, net of recoverables	$	2,501		$	2,465		$	2,378

Property and casualty reinsurance and indemnification recoverables

Total amounts recoverable from reinsurers and indemnitors as of December 31, 2019 and 2018 were $7.02 billion and $7.27 billion, respectively, including $112 million and $111 million, respectively, related to property and casualty losses paid by the Company and billed to reinsurers and indemnitors, and $6.91 billion and $7.15 billion, respectively, estimated by the Company with respect to ceded or indemnifiable unpaid losses (including IBNR), which are not billable until the losses are paid. The allowance for uncollectible reinsurance was $60 million and $65 million as of December 31, 2019 and 2018, respectively, primarily related to reinsurance recoverables arising from the Discontinued Lines and Coverages segment. Indemnification recoverables are considered collectible based on the industry pool and facility enabling legislation.

Property and casualty programs are grouped by the following characteristics:


1.	Indemnification programs - industry pools, facilities or associations that are governed by state insurance statutes or regulations or the federal government.


2.	Catastrophe reinsurance programs - reinsurance protection for catastrophe exposure nationwide and by specific states, as applicable.


3.	Other reinsurance programs - reinsurance protection for asbestos, environmental and other liability exposures as well as commercial lines, including shared economy.

Property and casualty reinsurance is in place for the Allstate Protection, Discontinued Lines and Coverages and Service Businesses segments. The Company purchases reinsurance after evaluating the financial condition of the reinsurer as well as the terms and price of coverage.

Indemnification programs

The Company participates in state-based industry pools or facilities mandating participation by insurers offering certain coverage in their state, including the Michigan Catastrophic Claims Association (“MCCA”), the New Jersey Property-Liability Insurance Guaranty Association (“PLIGA”), the North Carolina Reinsurance Facility (“NCRF”) and the Florida Hurricane Catastrophe Fund (“FHCF”). When the Company pays qualifying claims under the coverage indemnified by a state’s pool or facility, the Company is reimbursed for the qualifying claim losses or expenses. Each state pool or facility may assess participating companies to collect sufficient amounts to meet its total indemnification requirements. The enabling legislation for each state’s pool or facility compels the pool or facility only to indemnify participating companies for qualifying claim losses or expenses; the state pool or facility does not underwrite the coverage or take on the ultimate risk of the indemnified business. As a pass through, these pools or facilities manage the receipt of assessments paid by participating companies and payment of indemnified amounts for covered claims presented by participating companies. The Company has not had any credit losses related to these indemnification programs.

State-based industry pools or facilities

Michigan Catastrophic Claims Association The MCCA is a statutory indemnification mechanism for

member insurers’ qualifying personal injury protection claims paid for the unlimited lifetime medical benefits above the applicable retention level for qualifying injuries from automobile, motorcycle and commercial vehicle accidents. Indemnification recoverables on paid and unpaid claims, including IBNR, as of December 31, 2019 and 2018 include $5.50 billion and $5.40 billion, respectively, from the MCCA for its indemnification obligation.

The MCCA is funded by annually assessing participating member companies actively writing motor vehicle coverage in Michigan on a per vehicle basis that is currently $220 per vehicle insured. The MCCA’s calculation of the annual assessment is based upon the total of members’ actuarially determined present value of expected payments on lifetime claims by all persons expected to be catastrophically injured in that year and ultimately qualify for MCCA reimbursement, its operating expenses, and adjustments for the amount of excesses or deficiencies in prior assessments. The assessment is incurred by the Company as policies are written and recovered as a component of premiums from the Company’s customers.

The MCCA indemnifies qualifying claims of all current and former member companies (whether or not actively writing motor vehicle coverage in Michigan) for qualifying claims and claims expenses incurred while the member companies were actively writing the mandatory personal injury protection coverage in Michigan. Member companies actively writing automobile coverage in Michigan include the MCCA annual assessments in determining the level of premiums to charge insureds in the state.

As required for member companies by the MCCA, the Company reports covered paid and unpaid claims to the MCCA when estimates of loss for a reported claim are expected to exceed the retention level, the claims involve certain types of severe injuries, or there are litigation demands received suggesting the claim value exceeds certain thresholds. The retention level is adjusted upward every other MCCA fiscal year by the lesser of 6% or the increase in the Consumer Price Index. The retention level will be $580 thousand per claim for the fiscal two-years ending June 30, 2021 compared to $555 thousand per claim for the fiscal two-years ending June 30, 2019.

The MCCA is obligated to fund the ultimate liability of member companies’ qualifying claims and claim expenses. The MCCA does not underwrite the insurance coverage or hold any underwriting risk.

The MCCA indemnifies members as qualifying claims are paid and billed by members to the MCCA. Unlimited lifetime covered losses result in significant levels of ultimate incurred claim reserves being recorded by member companies along with offsetting indemnification recoverables. Disputes with claimants over coverage on certain reported claims can result in additional losses, which may be recoverable from the MCCA, excluding litigation expenses. There is currently no method by which insurers are able to

obtain the benefit of managed care programs to reduce claims costs through the MCCA.

The MCCA annual assessments fund current operations and member company reimbursements. The MCCA prepares statutory-basis financial statements in conformity with accounting practices prescribed or permitted by the State of Michigan Department of Insurance and Financial Services (“MI DOI”). The MI DOI has granted the MCCA a statutory permitted practice that expires in June 30, 2022 to discount its liabilities for loss and loss adjustment expense. As of June 30, 2019, the date of its most recent annual financial report, the MCCA had cash and invested assets of $21.83 billion and an accumulated surplus of $1.28 billion. The permitted practice reduced the accumulated deficit by $39.64 billion.

New Jersey Property-Liability Insurance Guaranty Association PLIGA serves as the statutory administrator of the Unsatisfied Claim and Judgment Fund (“UCJF”), Workers’ Compensation Security Fund and the New Jersey Surplus Lines Insurance Guaranty Fund.

In addition to its insolvency protection responsibilities, PLIGA reimburses insurers for unlimited excess medical benefits (“EMBs”) paid in connection with personal injury protection claims in excess of $75,000 for policies issued or renewed prior to January 1, 1991, and limited EMB claims in excess of $75,000 and capped at $250,000 for policies issued or renewed on or after January 1, 1991, to December 31, 2003.

A significant portion of the incurred claim reserves and the recoverables can be attributed to a small number of catastrophic claims. Assessments paid to PLIGA for the EMB program totaled $8.1 million in 2019. The amounts of paid and unpaid recoverables as of December 31, 2019 and 2018 were $446 million and $461 million, respectively.

PLIGA annually assesses all admitted property and casualty insurers writing covered lines in New Jersey for PLIGA indemnification and expenses. PLIGA assessments may be recouped as a surcharge on premiums collected. PLIGA does not ultimately retain underwriting risk as it assesses member companies for their expected qualifying losses to provide funding for payment of its indemnification obligation to member companies for their actual losses. As a pass through, PLIGA facilitates these transactions of receipt of assessments paid by member companies and payment to member companies for covered claims presented by them for indemnification. As of December 31, 2018, the date of its most recent annual financial report, PLIGA had a fund balance of $250 million.

As statutory administrator of the UCJF, PLIGA provides compensation to qualified claimants for personal injury protection, bodily injury, or death caused by private passenger automobiles operated by uninsured or “hit and run” drivers. The UCJF also provides private passenger pedestrian personal injury protection benefits when no other coverage is available.

PLIGA annually collects a UCJF assessment from all admitted property and casualty insurers writing motor vehicle liability insurance in New Jersey for UCJF indemnification and expenses. UCJF assessments can be expensed as losses recoverable in rates as appropriate. As of December 31, 2018, the date of its most recent annual financial report, the UCJF fund had a balance of $41 million.

North Carolina Reinsurance Facility The NCRF provides automobile liability insurance to drivers that insurers are not otherwise willing to insure. All insurers licensed to write automobile insurance in North Carolina are members of the NCRF. Premiums, losses and expenses are assigned to the NCRF. North Carolina law allows the NCRF to recoup operating losses for certain insureds through a surcharge to policyholders. As of September 30, 2019, the NCRF reported a deficit of $110 million in members’ equity. The NCRF implemented a loss recoupment surcharge on all private passenger and commercial fleet policies effective October 1, 2019, through September 30, 2020. Member companies are assessed the recoupment surcharge. The loss recoupment surcharge will be adjusted on October 1, 2020 and discontinued once losses are recovered. The NCRF results are shared by the member companies in proportion to their respective North Carolina automobile liability writings. For the fiscal quarter ending September 30, 2019, net income was $105 million, including $1.10 billion of earned premiums, $271 million of certain private passenger auto risk recoupment and $137 million of member loss recoupments. As of December 31, 2019, the NCRF recoverables on paid claims is $9.4 million and recoverables on unpaid claims is $69.1 million. Paid recoverable balances, if covered, are typically settled within sixty days of monthly filing.

Florida Hurricane Catastrophe Fund Allstate subsidiaries Castle Key Insurance Company (“CKIC”) and Castle Key Indemnity Company (“CKI”, and together with CKIC, “Castle Key”) participate in the mandatory coverage provided by the FHCF and therefore have access to reimbursement for certain qualifying Florida hurricane losses from the FHCF. Castle Key has exposure to assessments and pays annual premiums to the FHCF for this reimbursement protection. The FHCF has the authority to issue bonds to pay its obligations to participating insurers in excess of its capital balances. Payment of these bonds is funded by emergency assessments on all property and casualty premiums in the state, except workers’ compensation, medical malpractice, accident and health insurance and policies written under the National Flood Insurance Program (“NFIP”). The FHCF emergency assessments are limited to 6% of premiums per year beginning the first year in which reimbursements require bonding, and up to a total of 10% of premiums per year for assessments in the second and subsequent years, if required to fund additional bonding. The FHCF issued $2.00 billion in pre-event bonds in 2013 to build its capacity to reimburse member companies’ claims. The FHCF plans to fund these pre-event bonds through current FHCF cash flows. Pursuant to an Order issued by the Florida Office of Insurance Regulation (“FL OIR”), the

emergency assessment is zero for all policies issued or renewed on or after January 1, 2015.

Annual premiums earned and paid under the FHCF agreement were $9 million, $10 million and $11 million in 2019, 2018 and 2017, respectively. Qualifying losses were $33 million, $143 million and $19 million in 2019, 2018 and 2017, respectively. The Company has access to reimbursement provided by the FHCF for 90% of qualifying personal property losses that exceed its current retention of $52 million for the two largest hurricanes and $17 million for other hurricanes, up to a maximum total of $145 million, effective from June 1, 2019 to May 31, 2020. The amounts recoverable from the FHCF totaled $52 million and $104 million as of December 31, 2019 and 2018, respectively.

Federal Government - National Flood Insurance Program NFIP is a program administered by the Federal Emergency Management Agency (“FEMA”) whereby the Company sells and services NFIP flood insurance policies as an agent of FEMA and receives fees for its services. The Company is fully indemnified for claims and claim expenses and does not retain any ultimate risk for the indemnified business. The federal government is obligated to pay all claims and certain allocated loss adjustment expenses in accordance with the arrangement.

Congressional authorization for the NFIP is periodically evaluated and may be subjected to freezes, including when the federal government experiences a shutdown. FEMA has a NFIP reinsurance program to manage the future exposure of the NFIP through the transfer of risk to private reinsurance companies and capital market investors. Congress is evaluating the funding of the program as well as considering reforms to the program that would be incorporated in legislation to reauthorize the NFIP.

The amounts recoverable as of December 31, 2019 and 2018 were $25 million and $31 million, respectively. Premiums earned under the NFIP include $258 million, $258 million and $263 million in 2019, 2018 and 2017, respectively. Qualifying losses incurred include $150 million, $118 million and $1.12 billion in 2019, 2018 and 2017, respectively.

Catastrophe reinsurance

The Company’s reinsurance program is designed to provide reinsurance protection for catastrophes resulting from multiple perils including hurricanes, windstorms, hail, tornadoes, earthquakes, wildfires, and fires following earthquakes.


•	The majority of the Company’s program comprises multi-year contracts, primarily placed in the traditional reinsurance market, such that generally one-third of the program is renewed every year.


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


•	The Company purchases reinsurance from traditional reinsurance companies as well as the insurance linked securities market.


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

The Company has not experienced credit losses on its catastrophe reinsurance programs. The Company ceded premiums earned of $376 million, $343 million and $344 million under catastrophe reinsurance agreements in 2019, 2018 and 2017, respectively. The Company has the following catastrophe reinsurance agreements in effect as of December 31, 2019:

The Nationwide Excess Catastrophe Reinsurance Program (the “Nationwide Program”) provides $4.86 billion of reinsurance coverage subject to a $500 million retention and is subject to the amount of reinsurance placed in each of its nine layers.

Per Occurrence and Aggregate Excess Agreements, include occurrence coverage in contracts from both the traditional reinsurance and insurance linked securities (“ILS”) markets, while aggregate protection is included in two contracts supported by the ILS market. The agreements provide multi-line catastrophe coverage in every state except Florida, where coverage is only provided for personal lines automobile.

Layer 1 through Layer 5 - Per Occurrence Excess Agreement For the June 1, 2019 to May 31, 2020 term, coverage for each of layers one through five is placed in the traditional reinsurance market with each layer comprising three contracts. Each contract provides one-third of 95% of the total layer limit expiring May 31, 2020, May 31, 2021 and May 31, 2022, respectively. One-third of the limit provided by each of layers one through five includes coverage for New Jersey. Two-thirds of the limit provided by each of layers one through five also includes coverage for the Company’s commercial lines property and automobile catastrophe losses. The contracts for each of layers one through five include one reinstatement of limits per year, with premium required. Reinsurance premiums are subject to redetermination for exposure changes on an annual basis.

Layer 6 – Per Occurrence Excess Agreement The layer six contract placed in the traditional reinsurance market contains comparable contract terms and conditions as layers one through five, with New Jersey and commercial lines property and automobile catastrophe losses included in the definition of subject loss. The layer six contract provides a $324 million limit, is 95% placed, and expires May 31, 2022. This contract contains a variable reset option, which the ceding entities may elect to invoke at each anniversary and which allows for the annual adjustment of the attachment and exhaustion level within specified limits. The layer six contract contains one reinstatement of limits over its seven-year term with premium required. As of July 1, 2019, a reinstatement of limits has not been executed under this contract. Reinsurance premiums for this contract are subject to redetermination for exposure changes on an annual basis.

Layer 7 – Per Occurrence Excess and Aggregate Agreements The seventh layer consists of four contracts:


•	Seven-Year Term


•	2019-1 Excess Catastrophe Reinsurance


•	Wrap Fill Excess Catastrophe Reinsurance


•	2017-1 Excess Catastrophe Reinsurance

Seven-Year Term Contract, which is placed in the traditional reinsurance market contains comparable contract terms and conditions as layer six. The contract provides a $446 million limit and is 29.37% placed, and expires May 31, 2022. The contract contains a variable reset option which allows for the annual adjustment of the attachment and exhaustion level within specified limits. The variable reset option requires a premium adjustment. The contract contains one reinstatement of limits over its seven-year term with premium required. Reinsurance premiums for all contracts are subject to redetermination for exposure changes on an annual basis.

2019-1 Excess Catastrophe Reinsurance Contract reinsures personal lines property and automobile excess losses in 49 states and the District of Columbia, excluding Florida, caused by named storms, earthquakes and fire following earthquakes, severe weather, wildfires, and other naturally occurring or man-made events declared to be a catastrophe by the Company. This contract is placed with Sanders Re II Ltd. which obtained funding from the ILS market to collateralize the contract’s limit. The contract reinsures business located in the covered territory and arising out of covered events. The contract’s risk period began April 1, 2019 and terminates on March 31, 2023. The contract provides a $400 million limit and is 75% placed, during its four-year term which can be used on a per occurrence or an annual aggregate basis. For a qualifying loss occurrence, the contract provides 75% of $400 million in reinsurance limits in excess of a minimum $2.75 billion retention for the April 1, 2019 to March 31, 2020 period. The New Jersey Excess Catastrophe Agreement, layer six, the Seven-Year Term Contract for layer seven, and the 5% co-participation inure to the benefit of this contract for events that exceed the retention. As a result, while those layers are fully intact, the contract would begin to pay subject losses in excess of $3.07 billion.

The contract also provides an annual aggregate limit of 75% of $400 million in reinsurance limits between a $3.54 billion to $3.94 billion layer subject to an annual retention of $3.54 billion. For each annual period beginning April 1, the Company declared catastrophes occurring during such annual period can be aggregated to erode the aggregate retention and qualify for coverage under the aggregate limit. Reinsurance recoveries from and including layers one through seven of the Nationwide Program and the New Jersey Excess Catastrophe Agreement inure to the benefit of the annual aggregate layer.

Reinsurance recoveries collected under the per occurrence limit of this contract are not eligible for cession under the annual aggregate limit of this

contract. Reinsurance recoveries for all loss occurrences and annual aggregate losses qualifying for coverage during the contract’s four-year risk period are limited to the Company’s ultimate net loss from covered events and subject to the contract’s $400 million limit, 75% placed. The contract contains a variable reset option, which the ceding entities may invoke for risk periods subsequent to the first risk period and which allows for the annual adjustment of the contract’s attachment and exhaustion levels within specified limits.

Wrap Fill Excess Catastrophe Reinsurance Contract provides a $200 million limit in excess of a minimum $2.75 billion retention, is 100% placed in the traditional market, and expires March 31, 2020. This layer is structured to cover gaps around the traditional Seven-Year Term Contract and the Sanders Re II Ltd. 2019-1 contract. The contract provides additional gap coverage as the layer shifts down in attachment, subject to the $2.75 billion minimum retention level as lower layer limits are exhausted. A retention co-participation of 5% for a layer of $1.61 billion in excess of $2.75 billion is deemed in place and inures to the benefit of this contract. Recoveries from contracts in layers six and seven, with the exception of Sanders Re Ltd. 2017-1, inure to the benefit of this contract, as this multiple peril contract provides coverage for perils and subject business not reinsured in portions of layers seven. While those layers are fully intact, the contract would begin to pay subject losses in excess of $3.07 billion. This contract does not include a reinstatement of limits.

2017-1 Excess Catastrophe Reinsurance Contract reinsures personal lines property and automobile excess losses in 49 states and the District of Columbia, excluding the State of Florida, caused by named storms, earthquakes and fire following earthquakes, severe thunderstorms, winter storms, volcanic eruptions, and meteorite impacts. This contract is placed with Sanders Re Ltd., which obtained funding from the ILS market to collateralize the contract’s limit. The contract reinsures actual losses to personal lines property business located in the covered territory and arising out of a covered event. Amounts payable for automobile losses are based on insured industry losses as reported by Property Claim Services (“PCS”) and further adjusted to account for the Company’s auto exposures in reinsured areas. Reinsurance recoveries under the contract are limited to the Company’s ultimate net loss from a covered event subject to the contract’s limit. The contract’s risk period began March 31, 2017 and terminates on November 30, 2021. The contract provides a $375 million limit in excess of $2.75 billion retention. The New Jersey Excess Catastrophe Agreement, layer six, the Seven-Year Term Contract for layer seven, the Wrap Fill contract, and the 5% co-participation inure to the benefit of this contract for events that exceed the retention. As a result, while those layers are fully intact, the contract would begin to pay subject losses in excess of $3.69 billion.

The contract contains a variable reset option, which the ceding entities may invoke for risk periods subsequent to the first risk period and which allows for

the annual adjustment of the contract’s attachment and exhaustion levels within specified limits. The variable reset option requires a premium adjustment. The contract does not include a reinstatement of limits.

To summarize the order of operations and inuring protection for the seventh layer for an occurrence loss, for losses below $3.40 billion, the portion of the seventh layer placed in the traditional market would not be enacted. Once the sixth layer is exhausted, the co-participation of 5% would apply and then the 2019-1 Excess Catastrophe Reinsurance contract and Wrap Fill contract, dependent on the subject business contributing to the per occurrence loss. For losses greater than the $3.40 billion retention, the portions of the seventh layer placed in the traditional market would apply first as they inure to the benefit of the portions of the seventh layer placed in the ILS market. This would be followed by the co-participation of 5%, the 2019-1 Excess Catastrophe Reinsurance Contract, the Wrap Fill, and the 2017-1 Excess Catastrophe Reinsurance Contract, dependent on the per occurrence loss.

Layer 8 – Per Occurrence Excess Agreement – Gap Fill Excess Catastrophe Reinsurance Contract provides a $219 million limit in excess of a $2.75 billion retention, is 100% placed in the traditional market, and expires May 31, 2020. The contract provides additional gap coverage as the layer shifts down to the $2.75 billion retention level as lower layers are exhausted. A retention co-participation of 5% for a layer of $1.61 billion in excess of $2.75 billion is deemed in place and inures to the benefit of this contract. Recoveries from contracts in layers six and seven inure to the benefit of this contract, as this multiple peril contract provides coverage for perils and subject business not reinsured in portions of layers seven. While all inuring contracts are fully in place, this contract would begin to cover an occurrence subject loss in excess of $4.13 billion. This contract does not include a reinstatement of limits.

Layer 9 – Per Occurrence and Aggregate Excess Agreement – 2018-1 Excess Catastrophe Reinsurance Contract reinsures personal lines property and automobile excess catastrophe losses in 49 states and the District of Columbia, excluding the State of Florida, caused by named storms, earthquakes and fire following earthquakes, severe weather, wildfires, and other naturally occurring or man-made events declared to be a catastrophe by the Company. This contract is placed with Sanders Re Ltd., which obtained funding from the ILS market to collateralize the contract’s limit. The contract reinsures business located in the covered territory and arising out of a covered event. The contract’s risk period began April 1, 2018 and terminates on March 31, 2022. The contract provides one limit of $500 million during its four-year term, which can be used on a per occurrence or aggregate basis. For each qualifying loss occurrence, the contract provides 100% of $500 million in reinsurance limits, between a $4.36 billion to $4.86 billion layer for the April 1, 2019 to March 31, 2020 period.

The contract also provides an aggregate limit of 100% of $500 million in reinsurance limits between a

$3.94 billion to $4.44 billion. For each annual period beginning April 1, the Company declared catastrophes occurring during such annual period can be aggregated to erode the aggregate retention and qualify for coverage under the aggregate limit. Reinsurance recoveries from and including layers one through seven of the Nationwide Program and the New Jersey Excess Catastrophe Agreement inure to the benefit of the annual aggregate layer.

Reinsurance recoveries collected under the per occurrence limit of this contract are not eligible for cession under the aggregate limit of this contract. Reinsurance recoveries for all loss occurrences and aggregate losses qualifying for coverage during the contract’s four-year risk period are limited to the Company’s ultimate net loss from covered events and subject to the contract’s $500 million limit. The contract does not include a reinstatement of limits.

Other catastrophe reinsurance programs – The following programs are designed separately from the Nationwide Program to address distinct exposures in certain states and markets.

The Company has a separate reinsurance program designed to cover personal lines property policies in Florida written through Castle Key, its separately capitalized wholly-owned subsidiaries.

Florida Excess Catastrophe Reinsurance Agreement comprises five contracts, as described below, which reinsures Castle Key for personal lines property excess catastrophe losses in Florida. For the June 1, 2019 to May 31, 2020 term, the agreement includes two contracts placed in the traditional market, Castle Key’s reimbursement contracts with the Florida Hurricane Catastrophe Fund (“Mandatory FHCF contracts”), and the Sanders Re 2017-2 Contract (“Sanders Re 2017-2”) placed in the ILS markets.

Below FHCF Contract reinsures personal lines property excess catastrophe losses caused by multiple perils in Florida. The contract provides three separate limits of $34 million in excess of a $20 million retention, each occurrence, and is 100% placed. The contract includes two reinstatements of limits. The first reinstatement of limits is prepaid and the second or final reinstatement requires additional premium. Only the portion of the limit utilized to indemnify losses from an event mandatorily reinstates; the remaining reinstatement limit remains available and will be used as future events erode the per occurrence contract limit. Reinsurance premium is subject to redetermination for exposure changes.

Mandatory FHCF Contracts indemnify qualifying personal lines property losses caused by storms the National Hurricane Center declares to be hurricanes. The contracts provide $151 million of limits in excess of a $54 million provisional retention and are 90% placed (or $136 million in excess of a $54 million provisional retention), and also include reimbursement of up to 10% of eligible loss adjustment expenses, which is part of and not in addition to the reinsurance limit provided, with no reinstatement of limits. For each of the two largest hurricanes, the provisional retention is $54 million and a retention equal to one-third of that

amount, or approximately $18 million, is applicable to all other hurricanes for the season beginning June 1, 2019. The limit and retention of the Mandatory FHCF Contracts are subject to remeasurement based on June 30, 2019 exposure data. In addition, the FHCF’s retention is subject to adjustment upward or downward to an actual retention based on exposures submitted to the FHCF by all participants.

Excess contract reinsures personal lines property excess catastrophe losses caused by multiple perils in Florida. The contract is a two-year term contract effective June 1, 2018 to May 31, 2020 and provides $249 million of reinsurance limits each contract year. For the June 1, 2019 to May 31, 2020 term, the contract provides one limit of $249 million in excess of a $20 million retention and is 100% placed. Recoveries from the Below FHCF contract and Mandatory FHCF contracts inure to the benefit of this contract. The contract provides reinsurance limits above the Mandatory FHCF Contracts, for CKIC’s and CKI’s 10% co-participation in the Mandatory FHCF Contracts, and for loss occurrences not subject to reimbursement under the Mandatory FHCF Contracts which only reinsure losses arising out of hurricanes. The contract does not include a reinstatement of limits. Reinsurance premium is subject to redetermination for exposure changes.

Sanders Re 2017-2 is a three-year term contract with a risk period effective June 1, 2017 through May 31, 2020. It reinsures qualifying personal lines property losses caused by a named storm event, a severe thunderstorm event, an earthquake event, a wildfire event, a volcanic eruption event, or a meteorite impact event in Florida as events declared by various reporting agencies, including PCS and as defined in the contract. Should PCS cease to report on severe thunderstorms, then such event will be deemed a severe thunderstorm event if Castle Key has assigned a catastrophe code to such severe thunderstorm. Sanders Re obtained funding from the ILS market to provide collateral equal to the contract’s limit.

The contract provides limits of $200 million in excess of a $20 million retention and in excess of “stated reinsurance” and is 100% placed. For the June 1, 2019 to May 31, 2020 risk period, stated reinsurance is defined to include the Below FHCF contract, the Mandatory FHCF contracts, which are deemed to exhaust due to loss occurrences subject to the non-FHCF contracts, and the Excess contract. Stated reinsurance is deemed to be provided on a multiple peril basis under the terms of the non-FHCF contracts and includes an erosion feature, which provides that upon the exhaustion of a portion of the stated reinsurance, coverage under the Sanders Re contract shall be concurrently placed above and contiguous to the unexhausted portion of the stated reinsurance, if any. The Sanders Re 2017-2 contract contains a variable reset option, which Castle Key may invoke for risk periods subsequent to the first risk period and which allows for the annual adjustment of the contract’s attachment and exhaustion levels. The variable reset option requires a premium adjustment.

The contract does not contain a reinstatement of limits.

The Company’s New Jersey, Kentucky, Florida and Southeast States and California reinsurance agreements are described below.

New Jersey Excess Catastrophe Reinsurance Agreement comprises two existing contracts and a newly placed contract that reinsures personal lines property and automobile excess catastrophe losses in New Jersey caused by multiple perils. The placed contracts effective June 1, 2018 and June 1, 2019 include coverage for commercial lines property and automobile (physical damage only) catastrophe losses.

The contracts expire May 31, 2020, May 31, 2021 and May 31, 2022, and provide 31.67%, 31.67% and 31.66%, respectively, of $400 million of limits in excess of a $145 million retention, a $150 million retention, and a $150 million retention, respectively. Each contract includes one reinstatement of limits per contract year with premium due. The reinsurance premium and retention are subject to redetermination for exposure changes on an annual basis.

Kentucky Earthquake Excess Catastrophe Reinsurance Contract is a three-year contract that reinsures personal lines property losses in Kentucky caused by earthquakes and fire following earthquakes. The contract expires May 31, 2020 and provides three limits of $28 million in excess of a $2 million retention, with two limits available in any one contract year, and is 95% placed. The reinsurance premium and retention are not subject to redetermination for exposure changes.

Florida and Southeast Auto Aggregate Excess Catastrophe Contract is a one-year term contract effective June 1, 2019 to May 31, 2020. This contract provides a single reinsurance limit at 80% of $250 million, subject to a $250 million aggregate retention, for catastrophe losses to personal lines and commercial lines automobile business (physical damage only) arising out of multiple perils and provided such losses arise out of a company declared catastrophe and result in a qualifying loss in the State of Florida. For these qualifying catastrophe events, coverage is also provided for losses to personal lines and commercial lines automobile business (physical damage only) in Alabama, Georgia, Louisiana, Mississippi, North Carolina, and/or South Carolina. The contract does not include a reinstatement of limits.

Excess & Surplus (E&S) Earthquake Contract is a three-year contract that reinsures personal lines property catastrophe losses in California caused by the peril of earthquakes and is insured by the Company’s excess and surplus lines insurer. The contract reinsures only shake damage resulting from the earthquake peril. The contract is effective July 1, 2018 and expires June 30, 2021, both days inclusive, and provides reinsurance on a 100% quota share basis with

no retention. The contract allows for cession of policies providing earthquake coverage as long as the total amount of in-force building limits provided by those policies does not exceed $400 million. This $400 million cap limits the policies that are covered by the reinsurance contract and not the amount of loss eligible for cession, which includes losses to dwellings, other structures, personal property and additional living expenses on policies covered by this program. As of December 31, 2019, the $400 million cap which serves to limit cessions to the contract has not been exceeded.

Other reinsurance programs

The Company’s other reinsurance programs relate to asbestos, environmental, and other liability exposures and commercial lines, including shared economy. These programs include reinsurance recoverables of $158 million and $165 million from Lloyd’s of London as of December 31, 2019 and 2018, respectively. Excluding Lloyd’s of London, the largest reinsurance recoverable balance the Company had outstanding was $115 million and $37 million from Aleka Insurance Inc. as of December 31, 2019 and 2018, respectively.

Lloyd’s of London, through the creation of Equitas Limited (“Equitas”), implemented a restructuring to solidify its capital base and to segregate claims for years prior to 1993. In 2007, Berkshire Hathaway’s subsidiary, National Indemnity Company, assumed responsibility for the Equitas’ claim liabilities through a loss portfolio transfer reinsurance agreement and continues to runoff the Equitas’ claims.

Life and annuity reinsurance recoverables

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

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



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

In addition, the Company has used reinsurance to effect the disposition of certain blocks of business. The Company had reinsurance recoverables of $1.29 billion and $1.36 billion as of December 31, 2019 and

2018, respectively, due from Prudential related to the disposal of substantially all of its variable annuity business that was effected through reinsurance agreements.



Amounts ceded to Prudential
	As of December 31,
($ in millions)	2019		2018		2017
Premiums and contract charges	$	65	$	72	$	76
Contract benefits	4		87		7
Interest credited to contractholder funds	19		20		20
Operating costs and expenses	12		14		15

As of December 31, 2019 and 2018, the Company had reinsurance recoverables of $112 million and $118 million, respectively, due from subsidiaries of Citigroup (Triton Insurance and American Health and Life Insurance) and Scottish Re (U.S.), Inc. in connection with the disposition of substantially all of the direct response distribution business in 2003.

As of December 31, 2019, the Company had $70 million of reinsurance recoverables, net of an allowance for estimated uncollectible amounts, related to Scottish Re (U.S.), Inc. On December 14, 2018, the Delaware Insurance Commissioner placed Scottish Re (U.S.), Inc. under regulatory supervision. On March 6, 2019, the Chancery Court of the State of Delaware entered a Rehabilitation and Injunction Order (the “Rehabilitation Order”) in response to a petition filed by the Insurance Commissioner (the “Petition”). Pursuant to the Petition, it is expected that Scottish Re (U.S.), Inc. will submit a Plan of Rehabilitation. The Company joined in a joint motion filed on behalf of several affected parties asking the court to allow a specified amount of offsetting claim payments and losses against premiums remitted to Scottish Re (U.S.), Inc. The Company also filed a separate motion related to the reimbursement of claim payments where Scottish

Re (U.S.), Inc. is also acting as administrator. The Court has not yet ruled on either of these motions. In the interim, the Company and several other affected parties have been permitted to exercise certain setoff rights while the parties address any potential disputes. The Company continues to monitor Scottish Re (U.S.), Inc. for future developments and will reevaluate its allowance for uncollectible amounts as new information becomes available.

The Company is the assuming reinsurer for Lincoln Benefit Life Company’s (“LBL’s”) life insurance business sold through the Allstate agency channel and LBL’s payout annuity business in force prior to the sale of LBL on April 1, 2014. Under the terms of the reinsurance agreement, the Company is required to have a trust with assets greater than or equal to the statutory reserves ceded by LBL to the Company, measured on a monthly basis. As of December 31, 2019, the trust held $6.25 billion of investments, which are reported in the Consolidated Statement of Financial Position.

As of December 31, 2019, the gross life insurance in force was $449.20 billion of which $74.02 billion was ceded to the unaffiliated reinsurers.



Reinsurance recoverables on paid and unpaid benefits
	As of December 31,
($ in millions)	2019		2018
Annuities	$	1,305	$	1,381
Life insurance	749		776
Other	133		142
Total	$	2,187	$	2,299

As of both December 31, 2019 and 2018, approximately 93% of the reinsurance recoverables are due from companies rated A- or better by S&P.

Benefit Plans - Pension plan assets narrative (Details)	12 Months Ended
Benefit Plans - Pension plan assets narrative (Details)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Pension plans' assets
Expected weighted average long-term rate of return on primary employee plan assets for the next fiscal year	10 years
Expected weighted average long-term rate of return on employee-agent plan assets for the next fiscal year	5 years
Pension benefits
Pension plans' assets
Notional amount of derivatives, minimum percentage of plan assets	115.00%
Expected weighted average long-term rate of return on plan assets	7.34%	7.33%	7.32%
Expected weighted average long-term rate of return on plan assets for the next fiscal year	7.08%
Arithmetic average of the annual actual return on plan assets for the last 10 years	10.00%
Arithmetic average of the annual actual return on plan assets for the last 5 years	9.60%

Summary of Significant Accounting Policies - Property and equipment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property and equipment
Accumulated depreciation on property and equipment	$ 2,600	$ 2,410
Depreciation expense on property and equipment	$ 326	$ 299	$ 290
Equipment \| Minimum
Property and equipment
Property and equipment, estimated useful life, average	3 years
Equipment \| Maximum
Property and equipment
Property and equipment, estimated useful life, average	10 years
Real property
Property and equipment
Property and equipment, estimated useful life, average	40 years

Supplemental Cash Flow Information

12 Months Ended

Dec. 31, 2019

Supplemental Cash Flow Information [Abstract]

Supplemental Cash Flow Information



Note 19	Supplemental Cash Flow Information

Non-cash investing activities include $198 million, $94 million and $106 million related to mergers and exchanges completed with equity securities, fixed income securities and limited partnerships, and modifications of certain mortgage loans and other investments in 2019, 2018 and 2017, respectively.

Non-cash financing activities include $50 million, $32 million and $43 million related to the issuance of Allstate common shares for vested equity awards in 2019, 2018 and 2017, respectively. Non-cash financing activities also include $90 million related to debt acquired in conjunction with purchases of investments in 2017.

Cash flows used in operating activities in the Consolidated Statements of Cash Flows include cash paid for operating leases related to amounts included

in the measurement of lease liabilities of $155 million for the twelve months ended December 31, 2019. Non-cash operating activities include $604 million related to ROU assets obtained in exchange for lease obligations, including $488 million related to the adoption of new guidance related to accounting for leases, for the twelve months ended December 31, 2019.

Liabilities for collateral received in conjunction with the Company’s securities lending program and OTC 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 Consolidated Statements of Cash Flows along with the activities resulting from management of the proceeds as follows:



	For the years ended December 31,
($ in millions)	2019			2018			2017
Net change in proceeds managed
Net change in fixed income securities	$	80		$	234		$	259
Net change in short-term investments	(451		)	(568		)	(255		)
Operating cash flow (used) provided	(371		)	(334		)	4
Net change in cash	—			—			1
Net change in proceeds managed	$	(371	)	$	(334	)	$	5

Net change in liabilities
Liabilities for collateral, beginning of year	$	(1,458	)	$	(1,124	)	$	(1,129	)
Liabilities for collateral, end of year	(1,829		)	(1,458		)	(1,124		)
Operating cash flow provided (used)	$	371		$	334		$	(5	)

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities
Net income	$ 4,847	$ 2,160	$ 3,554
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other non-cash items	647	511	483
Realized capital gains and losses	(1,885)	877	(445)
Pension and other postretirement remeasurement gains and losses	114	468	(217)
Gain on disposition of operations	(6)	(6)	(20)
Interest credited to contractholder funds	640	654	690
Impairment of goodwill and purchased intangibles	106	0	125
Changes in:
Policy benefits and other insurance reserves	(508)	469	302
Unearned premiums	801	915	463
Deferred policy acquisition costs	(85)	(296)	(214)
Premium installment receivables, net	(299)	(396)	(131)
Reinsurance recoverables, net	320	(656)	(211)
Income taxes	487	(380)	(52)
Other operating assets and liabilities	(50)	855	(13)
Net cash provided by operating activities	5,129	5,175	4,314
Proceeds from sales
Fixed income securities	29,849	33,183	25,341
Equity securities	5,277	6,859	6,504
Limited partnership interests	756	764	1,125
Other investments	303	533	274
Investment collections
Fixed income securities	2,570	3,466	4,194
Mortgage loans	695	529	600
Other investments	254	488	642
Investment purchases
Fixed income securities	(31,317)	(36,960)	(31,145)
Equity securities	(7,176)	(5,936)	(6,585)
Limited partnership interests	(1,332)	(1,679)	(1,440)
Mortgage loans	(844)	(664)	(646)
Other investments	(666)	(864)	(999)
Change in short-term investments, net	(767)	(505)	2,610
Change in other investments, net	42	(98)	(30)
Purchases of property and equipment, net	(433)	(277)	(299)
Acquisition of operations	(18)	(558)	(1,356)
Net cash used in investing activities	(2,807)	(1,719)	(1,210)
Cash flows from financing activities
Proceeds from issuance of long-term debt	491	498	0
Redemption and repayment of long-term debt	(317)	(400)	0
Proceeds from issuance of preferred stock	1,414	557	0
Redemption of preferred stock	(1,132)	(385)	0
Contractholder fund deposits	996	1,010	1,025
Contractholder fund withdrawals	(1,662)	(1,967)	(1,890)
Dividends paid on common stock	(653)	(614)	(525)
Dividends paid on preferred stock	(134)	(134)	(116)
Treasury stock purchases	(1,735)	(2,303)	(1,495)
Shares reissued under equity incentive plans, net	120	73	135
Other	129	91	(57)
Net cash used in financing activities	(2,483)	(3,574)	(2,923)
Net (decrease) increase in cash	(161)	(118)	181
Cash at beginning of year	499	617	436
Cash at end of year	$ 338	$ 499	$ 617

Reserve for Property-Liability Insurance Claims and Claims Expense - Incurred and claims expense narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Increase (decrease) in claims and claims expense
Losses from catastrophes, net of recoveries	$ 23,976	$ 22,778	$ 21,847
Net increase (decrease) to reserves	130	255	503
Auto
Increase (decrease) in claims and claims expense
Net increase (decrease) to reserves	323	455	490
Homeowners
Increase (decrease) in claims and claims expense
Losses from catastrophes, net of recoveries	4,625
Other personal lines
Increase (decrease) in claims and claims expense
Losses from catastrophes, net of recoveries	1,024
Net increase (decrease) to reserves	(8)	7	(1)
Commercial lines
Increase (decrease) in claims and claims expense
Losses from catastrophes, net of recoveries	648
Net increase (decrease) to reserves	(17)	(108)	(19)
Discontinued Lines and Coverages
Increase (decrease) in claims and claims expense
Unfavorable reestimate	95
Commercial Lines, Discontinued Lines and Coverages and Other Personal Lines [Member]
Increase (decrease) in claims and claims expense
Net increase (decrease) to reserves	2	2	(2)
Catastrophes
Increase (decrease) in claims and claims expense
Losses from catastrophes, net of recoveries	2,560	2,860	3,230
Catastrophes \| Auto
Increase (decrease) in claims and claims expense
Net increase (decrease) to reserves	17	39	15
Catastrophes \| Homeowners
Increase (decrease) in claims and claims expense
Net increase (decrease) to reserves	(66)	(65)	7
Catastrophes \| Other personal lines
Increase (decrease) in claims and claims expense
Net increase (decrease) to reserves	0	1	(3)
Catastrophes \| Commercial lines
Increase (decrease) in claims and claims expense
Net increase (decrease) to reserves	1	0	(1)
Catastrophes \| Discontinued Lines and Coverages
Increase (decrease) in claims and claims expense
Net increase (decrease) to reserves	0	0	0
Catastrophes \| Commercial Lines, Discontinued Lines and Coverages and Other Personal Lines [Member]
Increase (decrease) in claims and claims expense
Net increase (decrease) to reserves	0	0	0
Catastrophe loss reestimates
Increase (decrease) in claims and claims expense
Net increase (decrease) to reserves	(48)	(25)	18
Reserve reestimates \| Homeowners
Increase (decrease) in claims and claims expense
Net increase (decrease) to reserves	(65)	(14)	131
Reserve reestimates \| Discontinued Lines and Coverages
Increase (decrease) in claims and claims expense
Net increase (decrease) to reserves	(105)	(87)	(96)
Discontinued Lines and Coverages
Increase (decrease) in claims and claims expense
Losses from catastrophes, net of recoveries	91
Non-catastrophe losses
Increase (decrease) in claims and claims expense
Net increase (decrease) to reserves	178	280	485
Non-catastrophe losses \| Auto
Increase (decrease) in claims and claims expense
Net increase (decrease) to reserves	306	416	475
Non-catastrophe losses \| Homeowners
Increase (decrease) in claims and claims expense
Net increase (decrease) to reserves	1	51	124
Non-catastrophe losses \| Other personal lines
Increase (decrease) in claims and claims expense
Net increase (decrease) to reserves	(8)	6	2
Non-catastrophe losses \| Commercial lines
Increase (decrease) in claims and claims expense
Net increase (decrease) to reserves	(18)	(108)	(18)
Non-catastrophe losses \| Discontinued Lines and Coverages
Increase (decrease) in claims and claims expense
Net increase (decrease) to reserves	(105)	(87)	(96)
Non-catastrophe losses \| Commercial Lines, Discontinued Lines and Coverages and Other Personal Lines [Member]
Increase (decrease) in claims and claims expense
Net increase (decrease) to reserves	$ 2	$ 2	$ (2)

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies



Note 2	Summary of Significant Accounting Policies

Investments

Fixed income securities include bonds, asset-backed securities (“ABS”) and mortgage-backed securities (“MBS”). MBS includes residential and commercial mortgage-backed securities that were previously disclosed separately. Fixed income securities, which may be sold prior to their contractual maturity, are designated as available-for-sale and are carried at fair value. The difference between amortized cost and fair value, net of deferred income taxes and related life and annuity deferred policy acquisition costs (“DAC”), deferred sales inducement costs (“DSI”) and reserves for life-contingent contract benefits, is reflected as a component of AOCI. Cash received from calls and make-whole payments is reflected as a component of proceeds from sales and cash received from maturities and pay-downs is reflected as a component of investment collections within the Consolidated Statements of Cash Flows.

Equity securities primarily include common stocks, exchange traded and mutual funds, non-redeemable preferred stocks and real estate investment trust equity investments. Certain exchange traded and mutual funds have fixed income securities as their underlying investments. Equity securities are carried at fair value. Equity securities without readily determinable or estimable fair values are measured using the measurement alternative, which is cost less impairment, if any, and adjustments resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. Due to the adoption of a new accounting standard for the recognition and measurement of financial assets and financial liabilities, the periodic change in fair value of equity securities is recognized within realized capital gains and losses on the Consolidated Statements of Operations effective January 1, 2018. As a result, 2017 net investment income and net realized capital gains and losses are not comparable to other periods presented.

Mortgage loans are carried at unpaid principal balances, net of unamortized premium or discount and valuation allowances. Valuation allowances are established for impaired loans when it is probable that contractual principal and interest will not be collected.

Investments in limited partnership interests are primarily accounted for in accordance with the equity method of accounting (“EMA”) and include interests in private equity funds, real estate funds and other funds. Investments in limited partnership interests purchased prior to January 1, 2018, where the Company’s interest is so minor that it exercises virtually no influence over operating and financial policies, are accounted for at fair value primarily utilizing the net asset value (“NAV”) as a practical expedient to determine fair value.

Short-term investments, including money market funds, commercial paper, U.S. Treasury bills and other short-term investments, are carried at fair value. Other investments primarily consist of bank loans, policy loans, real estate, agent loans and derivatives. Bank

loans are primarily senior secured corporate loans and are carried at amortized cost. Policy loans are carried at unpaid principal balances. Real estate is carried at cost less accumulated depreciation. Agent loans are loans issued to exclusive Allstate agents and are carried at unpaid principal balances, net of valuation allowances. Derivatives are carried at fair value.

Investment income primarily consists of interest, dividends, income from limited partnership interests, rental income from real estate, and income from certain derivative transactions. Interest is recognized on an accrual basis using the effective yield method and dividends are recorded at the ex-dividend date. Interest income for ABS and MBS is determined considering estimated pay-downs, including prepayments, obtained from third-party data sources and internal estimates. Actual prepayment experience is periodically reviewed, and effective yields are recalculated when differences arise between the prepayments originally anticipated and the actual prepayments received and currently anticipated. For ABS and MBS of high credit quality with fixed interest rates, the effective yield is recalculated on a retrospective basis. For all others, the effective yield is recalculated on a prospective basis. Accrual of income is suspended for other-than-temporarily impaired fixed income securities when the timing and amount of cash flows expected to be received is not reasonably estimable. Accrual of income is suspended for mortgage loans, bank loans and agent loans that are in default or when full and timely collection of principal and interest payments is not probable. Cash receipts on investments on nonaccrual status are generally recorded as a reduction of carrying value. Income from limited partnership interests carried at fair value is recognized based upon the changes in fair value of the investee’s equity primarily determined using NAV. Income from EMA limited partnership interests is recognized based on the Company’s share of the partnerships’ earnings. Income from EMA limited partnership interests is generally recognized on a three month delay due to the availability of the related financial statements from investees.

Realized capital gains and losses include gains and losses on investment sales, write-downs in value due to other-than-temporary declines in fair value, adjustments to valuation allowances on mortgage loans and agent loans, valuation changes of equity investments, including equity securities and certain limited partnerships where the underlying assets are predominately public equity securities, and periodic changes in fair value and settlements of certain derivatives, including hedge ineffectiveness. Realized capital gains and losses on investment sales are determined on a specific identification basis.

Derivative and embedded derivative financial instruments

Derivative financial instruments include interest rate swaps, credit default swaps, futures (interest rate and equity), options (including swaptions), interest rate caps, warrants and rights, foreign currency swaps,

foreign currency forwards, total return swaps and certain investment risk transfer reinsurance agreements. Derivatives required to be separated from the host instrument and accounted for as derivative financial instruments (“subject to bifurcation”) are embedded in equity-indexed life and annuity contracts and reinsured variable annuity contracts.

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

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

Fair value hedges The change in fair value of hedging instruments used in fair value hedges of investment assets or a portion thereof is reported in net investment income, together with the change in fair value of the hedged items. The change in fair value of hedging instruments used in fair value hedges of contractholder funds liabilities or a portion thereof is reported in interest credited to contractholder funds, together with the change in fair value of the hedged items. Accrued periodic settlements on swaps are reported together with the changes in fair value of the related swaps in net investment income or interest credited to contractholder funds. The amortized cost

for fixed income securities, the carrying value for mortgage loans or the carrying value of a designated hedged liability is adjusted for the change in fair value of the hedged risk.

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

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

When a derivative instrument used in a cash flow hedge of an existing asset or liability is no longer effective or is terminated, the gain or loss recognized on the derivative is reclassified from AOCI to income as the hedged risk impacts income. If the derivative

instrument is not terminated when a cash flow hedge is no longer effective, future gains and losses recognized on the derivative are reported in realized capital gains and losses. When a derivative instrument used in a cash flow hedge of a forecasted transaction is terminated because it is probable the forecasted transaction will not occur, the gain or loss recognized on the derivative is immediately reclassified from AOCI to realized capital gains and losses in the period that hedge accounting is no longer applied.

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

Securities loaned

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

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

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

Property and casualty insurance premiums include premiums from personal lines policies, protection plans, other contracts (primarily finance and insurance products) and roadside assistance.

Personal lines insurance premiums are deferred and earned on a pro-rata basis over the terms of the policies, typically periods of six or twelve months.

Revenues related to protection plans, other contracts (primarily finance and insurance products) and roadside assistance are deferred and earned over the term of the contract in a manner that recognizes revenue as obligations under the contracts are performed. Revenues from these products are classified as premiums as the products are backed by insurance. Protection plans and finance and insurance premiums are recognized using a cost-based incurrence method over the term of the contracts, which is generally over one to five years. Roadside assistance premiums are recognized evenly over the

term of the contract as performance obligations are fulfilled.

The portion of premiums written applicable to the unexpired terms of the policies is recorded as unearned premiums. As of December 31, 2019, unearned premiums were $12.57 billion and $2.76 billion for Allstate Protection and Service Businesses, respectively. Premium installment receivables, net, represent premiums written and not yet collected, net of an allowance for uncollectible premiums. The Company regularly evaluates premium installment receivables and adjusts its valuation allowance as appropriate. The valuation allowance for uncollectible premium installment receivables was $90 million and $77 million as of December 31, 2019 and 2018, respectively.

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

Immediate annuities with life contingencies, including certain structured settlement annuities, provide benefits over a period that extends beyond the period during which premiums are collected. Premiums from these products are recognized as revenue when received at the inception of the contract. Benefits are recognized in relation to premiums with the establishment of a reserve. The change in reserve over time is recorded in contract benefits and primarily relates to accumulation at the discount rate and annuitant mortality. Profits from these policies come primarily from investment income, which is recognized over the life of the contract.

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

Contracts that do not subject the Company to significant risk arising from mortality or morbidity are referred to as investment contracts. Fixed annuities, including market value adjusted annuities, equity-indexed annuities and immediate annuities without life

contingencies, are considered investment contracts. Consideration received for such contracts is reported as contractholder fund deposits. Contract charges for investment contracts consist of fees assessed against the contractholder account balance for maintenance, administration and surrender of the contract prior to contractually specified dates, and are recognized when assessed against the contractholder account balance.

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

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

Other revenue

Other revenue represents fees collected from policyholders relating to premium installment payments, commissions on sales of non-proprietary products, sales of identity protection services, fee-based services and other revenue transactions. Other revenue is recognized when performance obligations are fulfilled.

Deferred policy acquisition and sales inducement costs

Costs that are related directly to the successful acquisition of new or renewal insurance policies and investment contracts are deferred and recorded as DAC. These costs are principally agency’s and brokers’ remuneration, premium taxes and certain underwriting expenses. DSI costs, which are deferred and recorded as other assets, relate to sales inducements offered on sales to new customers, principally on fixed annuity and interest-sensitive life contracts. These sales inducements are primarily in the form of additional credits to the customer’s account balance or enhancements to interest credited for a specified period which are in excess of the rates currently being credited to similar contracts without sales inducements. DSI is amortized into income using the same methodology and assumptions as DAC and is included in interest credited to contractholder funds. All other acquisition costs are expensed as incurred and included in operating costs and expenses.

For property and casualty insurance, DAC is amortized into income as premiums are earned, typically over periods of six or twelve months for personal lines policies or generally one to five years for protection plans and other contracts (primarily related to finance and insurance products), and is included in amortization of deferred policy acquisition costs. DAC associated with property and casualty insurance is periodically reviewed for recoverability and adjusted if necessary. Future investment income is considered in determining the recoverability of DAC.

For traditional life and voluntary accident and health insurance, DAC is amortized over the premium paying period of the related policies in proportion to the estimated revenues on such business. Assumptions used in the amortization of DAC and reserve calculations are established at the time the policy is issued and are generally not revised during the life of the policy. Any deviations from projected business in force resulting from actual policy terminations differing from expected levels and any estimated premium deficiencies may result in a change to the rate of amortization in the period such events occur. Generally, the amortization periods for these policies approximates the estimated lives of the policies. The Company periodically reviews the recoverability of DAC using actual experience and current assumptions. Prior to fourth quarter 2017, the Company evaluated traditional life insurance products and immediate annuities with life contingencies on an aggregate basis. In conjunction with the segment changes that occurred in the fourth quarter of 2017, traditional life insurance products, immediate annuities with life contingencies, and voluntary accident and health insurance products are reviewed individually. If actual experience and current assumptions are adverse compared to the original assumptions and a premium deficiency is determined to exist, any remaining unamortized DAC balance would be expensed to the extent not recoverable and the establishment of a premium deficiency reserve may be required for any remaining deficiency.

For interest-sensitive life insurance, DAC and DSI are amortized in proportion to the incidence of the total present value of gross profits, which includes both actual historical gross profits (“AGP”) and estimated future gross profits (“EGP”) expected to be earned over the estimated lives of the contracts. The amortization is net of interest on the prior period DAC balance using rates established at the inception of the contracts. Actual amortization periods generally range from 15-30 years; however, incorporating estimates of the rate of customer surrenders, partial withdrawals and deaths generally results in the majority of the DAC being amortized during the surrender charge period, which is typically 10-20 years for interest-sensitive life. The rate of DAC and DSI amortization is reestimated and adjusted by a cumulative charge or credit to income when there is a difference between the incidence of actual versus expected gross profits in a reporting period or when there is a change in total EGP. When DAC or DSI amortization or a component of gross profits for a quarterly period is potentially negative (which would result in an increase of the DAC

or DSI balance) as a result of negative AGP, the specific facts and circumstances surrounding the potential negative amortization are considered to determine whether it is appropriate for recognition in the consolidated financial statements. Negative amortization is only recorded when the increased DAC or DSI balance is determined to be recoverable based on facts and circumstances. Recapitalization of DAC and DSI is limited to the originally deferred costs plus interest.

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

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

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

Customers of the Company may exchange one insurance policy or investment contract for another offered by the Company, or make modifications to an existing investment, life or property and casualty contract issued by the Company. These transactions are identified as internal replacements for accounting purposes. Internal replacement transactions determined to result in replacement contracts that are substantially unchanged from the replaced contracts are accounted for as continuations of the replaced contracts. Unamortized DAC and DSI related to the replaced contracts continue to be deferred and amortized in connection with the replacement contracts. For interest-sensitive life and investment contracts, the EGP of the replacement contracts are

treated as a revision to the EGP of the replaced contracts in the determination of amortization of DAC and DSI. For traditional life and property and casualty insurance policies, any changes to unamortized DAC that result from replacement contracts are treated as prospective revisions. Any costs associated with the issuance of replacement contracts are characterized as maintenance costs and expensed as incurred. Internal replacement transactions determined to result in a substantial change to the replaced contracts are accounted for as an extinguishment of the replaced contracts, and any unamortized DAC and DSI related to the replaced contracts are eliminated with a corresponding charge to amortization of deferred policy acquisition costs or interest credited to contractholder funds, respectively.

The costs assigned to the right to receive future cash flows from certain business purchased from other insurers are also classified as DAC in the Consolidated Statements of Financial Position. The costs capitalized represent the present value of future profits expected to be earned over the lives of the contracts acquired. These costs are amortized as profits emerge over the lives of the acquired business and are periodically evaluated for recoverability. The present value of future profits was $39 million and $45 million as of December 31, 2019 and 2018, respectively. Amortization expense of the present value of future profits was $6 million, $2 million and $6 million in 2019, 2018 and 2017, respectively.

Reinsurance and Indemnification

Reinsurance In the normal course of business, the Company seeks to limit aggregate and single exposure to losses on large risks by purchasing reinsurance. The Company has also used reinsurance to effect the disposition of certain blocks of business. Reinsurance does not extinguish the Company’s primary liability under the policies written. Therefore, the Company regularly evaluates the financial condition of its reinsurers, including their activities with respect to claim settlement practices and commutations, and establishes allowances for uncollectible reinsurance as appropriate.

Indemnification The Company also participates in various indemnification mechanisms, including industry pools and facilities, which are backed by the financial resources of the property and casualty insurance company market participants. Indemnification recoverables are considered collectible based on the industry pool and facility enabling legislation.

The amounts reported as reinsurance and indemnification recoverables include amounts billed to reinsurers and indemnitors on losses paid as well as estimates of amounts expected to be recovered from reinsurers and indemnitors on insurance liabilities and contractholder funds that have not yet been paid. Reinsurance and indemnification recoverables on unpaid losses are estimated based upon assumptions consistent with those used in establishing the liabilities related to the underlying contracts. Insurance liabilities are reported gross of reinsurance and indemnification recoverables. Reinsurance and

indemnification premiums are generally reflected in income in a manner consistent with the recognition of premiums on the associated contracts. For catastrophe coverage, the cost of reinsurance premiums is recognized ratably over the contract period to the extent coverage remains available.

Reinsurance and indemnification recoverables are recognized as an offset to gross reserves for property and casualty insurance claims and claims expense.

Goodwill

Goodwill represents the excess of amounts paid for acquiring businesses over the fair value of the net assets acquired, less any impairment of goodwill recognized. The Company’s goodwill reporting units are equivalent to its reportable segments, Allstate Protection, Service Businesses, Allstate Life and Allstate Benefits to which goodwill has been assigned.



Goodwill by reporting unit
	As of December 31,
($ in millions)	2019		2018
Allstate Protection	$	810	$	810
Service Businesses	1,464		1,449
Allstate Life	175		175
Allstate Benefits	96		96
Total	$	2,545	$	2,530

Goodwill is recognized when acquired and allocated to reporting units based on which unit is expected to benefit from the synergies of the business combination. Goodwill is not amortized but is tested for impairment at least annually. The Company performs its annual goodwill impairment testing during the fourth quarter of each year based upon data as of the close of the third quarter. Goodwill impairment is 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 Company also reviews goodwill for impairment whenever events or changes in circumstances, such as deteriorating or adverse market conditions, indicate that it is more likely than not that the carrying amount of the reporting unit including goodwill may exceed the fair value of the reporting unit. The goodwill impairment analysis is performed at the reporting unit level.

In fourth quarter 2017, the Company adopted new reportable segments, which required the Company to evaluate goodwill, including the allocation of goodwill to any new reporting units on a relative fair value basis. 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. In conjunction with the reallocation of goodwill, the Company recognized $125 million of goodwill impairment related to the goodwill allocated to the Allstate Annuities reporting unit reflecting a market-based valuation. As of December 31, 2019 and 2018, the fair value of the Company’s reporting units exceeded their carrying values.

Intangible assets

Intangible assets (reported in other assets) consist of capitalized costs primarily related to acquired customer relationships, trade names and licenses, technology and other assets. The estimated useful lives of customer relationships, technology and other intangible assets are generally 10 years, 5 years and 7 years, respectively. Intangible assets are carried at cost less accumulated amortization. Amortization expense is calculated using an accelerated amortization method. Amortization expense on intangible assets was $126 million, $105 million and $99 million in 2019, 2018 and 2017, respectively.



Amortization expense of intangible assets for the next five years and thereafter
($ in millions)
2020	$	109
2021	91
2022	74
2023	60
2024	45
Thereafter	64
Total amortization	$	443

Accumulated amortization on intangible assets was $633 million and $572 million as of December 31, 2019 and 2018, respectively. Trade names and licenses are considered to have an indefinite useful life and are reviewed for impairment at least annually or more frequent if circumstances arise that indicate an impairment may have occurred. An impairment is recognized if the carrying amount of the asset exceeds its estimated fair value.



Intangible assets by type
	As of December 31,
($ in millions)	2019		2018
Customers relationships	$	419	$	530
Trade names and licenses	38		143
Technology and other	24		40
Total	$	481	$	713

During second quarter 2019, the Company made the decision to phase-out the use of the SquareTrade trade name in the United States and sell consumer protection plans under the Allstate Protection Plans name. The SquareTrade trade name will continue to be used outside of the United States. The change required an impairment evaluation of the indefinite-lived intangible asset recognized in the Service Businesses segment for SquareTrade’s trade name recorded when SquareTrade was acquired in 2017.

During fourth quarter 2019, the Company made the decision to integrate Esurance into the Allstate brand as part of the Transformative Growth Plan. This required an impairment evaluation of the indefinite-lived intangible asset recognized in the Allstate Protection segment for the Esurance trade name recorded when Esurance was acquired in 2011.

As a result of these actions, the Company recognized total impairment charges of $106 million pre-tax during 2019.

Property and equipment

Property and equipment is carried at cost less accumulated depreciation. Included in property and equipment are capitalized costs related to computer software licenses and software developed for internal use. These costs generally consist of certain external payroll and payroll related costs. Property and equipment depreciation is calculated using the straight-line method over the estimated useful lives of the assets, generally 3 to 10 years for equipment and 40 years for real property. Depreciation expense is reported in operating costs and expenses. Accumulated depreciation on property and equipment was $2.60 billion and $2.41 billion as of December 31, 2019 and 2018, respectively. Depreciation expense on property and equipment was $326 million, $299 million and $290 million in 2019, 2018 and 2017, respectively. The Company reviews its property and equipment for impairment at least annually and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Income taxes

Income taxes are accounted for using the asset and liability method under which deferred tax assets and liabilities are recognized for temporary differences between the financial reporting and tax bases of assets and liabilities at the enacted tax rates. The principal assets and liabilities giving rise to such differences are DAC, unearned premiums, investments (including unrealized capital gains and losses) and insurance reserves. A deferred tax asset valuation allowance is established when it is more likely than not such assets will not be realized. The Company recognizes interest expense related to income tax matters in income tax expense and penalties in other expense.

Reserve for property and casualty insurance claims and claims expense

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

historical development patterns for these data elements are used as the assumptions to calculate reserve estimates, including the reserves for reported and unreported claims. Reserve estimates are regularly reviewed and updated, using the most current information available. Any resulting reestimates are reflected in current results of operations.

Reserve for life-contingent contract benefits

The reserve for life-contingent contract benefits payable under insurance policies, including traditional life insurance, life-contingent immediate annuities and voluntary accident and health insurance products, is computed on the basis of long-term actuarial assumptions of future investment yields, mortality, morbidity, policy terminations and expenses. These assumptions, which for traditional life insurance are applied using the net level premium method, include provisions for adverse deviation and generally vary by characteristics such as type of coverage, year of issue and policy duration. The assumptions are established at the time the policy is issued and are generally not changed during the life of the policy. The Company periodically reviews the adequacy of reserves using actual experience and current assumptions. If actual experience and current assumptions are adverse compared to the original assumptions and a premium deficiency is determined to exist, any remaining unamortized DAC balance would be expensed to the extent not recoverable and the establishment of a premium deficiency reserve may be required for any remaining deficiency. In 2019 and 2018, the Company’s reviews concluded that no premium deficiency adjustments were necessary. Prior to fourth quarter 2017, the Company evaluated traditional life insurance products and immediate annuities with life contingencies on an aggregate basis. In conjunction with the Company’s segment changes that occurred in the fourth quarter of 2017, traditional life insurance products, immediate annuities with life contingencies, and voluntary accident and health insurance are reviewed individually. The Company also reviews these policies for circumstances where projected profits would be recognized in early years followed by projected losses in later years. If this circumstance exists, the Company will accrue a liability, during the period of profits, to offset the losses at such time as the future losses are expected to commence using a method updated prospectively over time. To the extent that unrealized gains on fixed income securities would result in a premium deficiency if those gains were realized, the related increase in reserves for certain immediate annuities with life contingencies is recorded net of tax as a reduction of unrealized net capital gains included in AOCI.

Contractholder funds

Contractholder funds represent interest-bearing liabilities arising from the sale of products such as interest-sensitive life insurance and fixed annuities. Contractholder funds primarily comprise cumulative deposits received and interest credited to the contractholder less cumulative contract benefits, surrenders, withdrawals and contract charges for

mortality or administrative expenses. Contractholder funds also include reserves for secondary guarantees on interest-sensitive life insurance and certain fixed annuity contracts and reserves for certain guarantees on reinsured variable annuity contracts.

Pension and other postretirement remeasurement gains and losses

Pension and other postretirement gains and losses represent the remeasurement of projected benefit obligation and plan assets, which are immediately recognized in earnings and are referred to as pension and other postretirement remeasurement gains and losses on the Consolidated Statements of Operations. The Company’s policy is to remeasure its pension and postretirement plans on a quarterly basis.

Differences between expected and actual returns and changes in assumptions affect our pension and other postretirement obligations, plan assets and expenses.

The primary factors contributing to pension and postretirement remeasurement gains and losses are:

• Changes in the discount rate used to value pension and postretirement obligations as of the measurement date

• Differences between the expected and the actual return on plan assets

• Changes in demographic assumptions, including mortality and participant experience

Pension and other postretirement service cost, interest cost, expected return on plan assets and amortization of prior service credits are allocated to the Company’s reportable segments. The pension and other postretirement remeasurement gains and losses are reported in the Corporate and Other segment.

Separate accounts

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

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

Legal contingencies

The Company reviews its lawsuits, regulatory inquiries, and other legal proceedings on an ongoing basis. The Company establishes accruals for such

matters at management’s best estimate when the Company assesses that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company’s assessment of whether a loss is reasonably possible or probable is based on its assessment of the ultimate outcome of the matter following all appeals. The Company does not include potential recoveries in its estimates of reasonably possible or probable losses. Legal fees are expensed as incurred.

Long-term debt

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

Equity incentive plans

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

Leases

The Company has certain operating leases for office facilities, computer and office equipment, and vehicles. The Company’s leases have remaining lease terms of 1 year to 10 years, some of which include options to extend the leases for up to 20 years, and some of which include options to terminate the leases within 60 days.

The Company determines if an arrangement is a lease at inception. Leases with an initial term less than one year are not recorded on the balance sheet and the lease costs for these leases are recorded as an expense on a straight-line basis over the lease term. Operating leases with terms greater than one year result in a lease liability recorded in other liabilities with a corresponding right-of-use (“ROU”) asset recorded in other assets. As of December 31, 2019, the Company had $586 million in lease liabilities and $483 million in ROU assets.

Operating lease liabilities are recognized at the commencement date based on the present value of future minimum lease payments over the lease term. ROU assets are recognized based on the corresponding lease liabilities adjusted for qualifying initial direct costs, prepaid or accrued lease payments and unamortized lease incentives. As most of the Company’s leases do not disclose the implicit interest rate, the Company uses collateralized incremental borrowing rates based on information available at

lease commencement when determining the present value of future lease payments. The Company has lease agreements with lease and non-lease components, which are accounted for as a single lease. Lease terms may include options to extend or terminate the lease which are incorporated into the Company’s measurements when it is reasonably certain that the Company will exercise the option.

Operating lease costs are recognized on a straight-line basis over the lease term and include interest expense on the lease liability and amortization of the ROU asset. Variable lease costs are expensed as incurred and include maintenance costs and real estate taxes. Lease costs are reported in operating costs and expenses and totaled $171 million, including $30 million of variable lease costs in 2019.



Other information related to operating leases
	As of December 31, 2019
Weighted average remaining lease term (years)	6
Weighted average discount rate	3.15	%



Maturity of lease liabilities
($ in millions)	Operating leases
2020	$	133
2021	121
2022	102
2023	84
2024	67
Thereafter	137
Total lease payments	$	644
Less: interest	(58		)
Present value of lease liabilities	$	586

Off-balance sheet financial instruments

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

Consolidation of variable interest entities (“VIEs”)

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

Foreign currency translation

The local currency of the Company’s foreign subsidiaries is deemed to be the functional currency of the country in which these subsidiaries operate. The financial statements of the Company’s foreign subsidiaries are translated into U.S. dollars at the exchange rate in effect at the end of a reporting period for assets and liabilities and at average exchange rates during the period for results of operations.

The unrealized gains and losses from the translation of the net assets are recorded as unrealized foreign currency translation adjustments and included in AOCI. Changes in unrealized foreign currency translation adjustments are included in OCI. Gains and losses from foreign currency transactions are reported in operating costs and expenses and have not been material.

Earnings per common share

Basic earnings per common share is computed using the weighted average number of common shares outstanding, including vested unissued participating restricted stock units. Diluted earnings per common share is computed using the weighted average number of common and dilutive potential common shares outstanding.

For the Company, dilutive potential common shares consist of outstanding stock options and unvested non-participating restricted stock units and contingently issuable performance stock awards. The effect of dilutive potential common shares does not include 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.



Computation of basic and diluted earnings per common share
	For the years ended December 31,
($ in millions, except per share data)	2019		2018		2017
Numerator:
Net income	$	4,847	$	2,160	$	3,554
Less: Preferred stock dividends	169		148		116
Net income applicable to common shareholders⁽¹⁾	$	4,678	$	2,012	$	3,438

Denominator:
Weighted average common shares outstanding	328.2		347.8		362.0
Effect of dilutive potential common shares:
Stock options	3.2		3.6		4.3
Restricted stock units (non-participating) and performance stock awards	2.1		1.8		1.5
Weighted average common and dilutive potential common shares outstanding	333.5		353.2		367.8

Earnings per common share – Basic	$	14.25	$	5.78	$	9.50
Earnings per common share – Diluted	$	14.03	$	5.70	$	9.35

Anti-dilutive options excluded from diluted earnings per common share	3.7		2.0		1.5

Adopted accounting standards

Accounting for Leases Effective January 1, 2019 the Company adopted new Financial Accounting Standards Board (“FASB”) guidance related to accounting for leases. Upon adoption of the guidance under the optional transition method that allows application of the transition provisions at the adoption date instead of the earliest period presented, the Company recorded a $585 million lease liability equal to the present value of lease payments and a $488 million ROU asset, which is the corresponding lease liability adjusted for qualifying accrued lease payments. The lease liability and ROU asset were reported as part of other liabilities and other assets on the Consolidated Statements of Financial Position. The impact of these changes at adoption had no impact on net income or shareholders’ equity. Prior periods were not restated under the new standard. The Company utilized the package of practical expedients permitted under the transition guidance which, among other things, did not require reassessment of existing contracts for the existence of a lease or reassessment of existing lease classifications.

Upon adoption, the new guidance required sellers in a sale-leaseback transaction to recognize the entire gain from the sale of an underlying asset at the time the sale is recognized rather than over the leaseback term. The carrying value of unrecognized gains on sale-leaseback transactions executed prior to January 1, 2019 was $21 million, after-tax, and was recorded as an increase to retained income at the date of adoption.

Accounting for Hedging Activities Effective January 1, 2019 the Company adopted new FASB guidance intended to better align hedge accounting with an organization’s risk management activities. The new guidance expands hedge accounting to nonfinancial and financial risk components and revises the measurement methodologies. Separate presentation of hedge ineffectiveness is eliminated with the intention to provide greater transparency to 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 were designed to reduce complexity by simplifying hedge effectiveness testing. The adoption had no impact on the Company’s results of operations or financial position.

Pending accounting standards

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 a reporting entity to recognize its estimate of expected credit losses for affected financial assets in a valuation allowance that when deducted from the amortized cost basis of the related financial assets results in a net carrying value at the amount expected to be collected. The reporting

entity must consider all relevant information available 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 which may change over time but once recorded cannot subsequently be reduced to an amount below zero. The guidance is effective for reporting 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’s implementation activities, which are being finalized, include review and validation of models, methodologies, data inputs and assumptions to be used to estimate expected credit losses. The implementation impacts relate primarily to the Company’s commercial mortgage loans, bank loans and reinsurance recoverables and are dependent on economic conditions and judgments at the date of adoption. Based on the economic conditions at the date of adoption and the balances at the reporting date, the Company estimates the application of the current expected credit loss requirements will result in total valuation allowances for credit losses of approximately $300 million, as of the date of adoption. After consideration of existing valuation allowances maintained prior to adoption of the new guidance, the Company expects to recognize a cumulative-effect decrease in retained income of approximately $100 million, after-tax, to adjust existing valuation allowances to the basis in the new requirements.

Changes to the Disclosure Requirements for Defined Benefit Plans

In August 2018, the FASB issued amendments to modify certain disclosure requirements for defined benefit plans. Disclosure additions relate to the weighted-average interest crediting rates for cash balance plans and other plans with interest crediting rates and explanations for significant gains and losses related to changes in the benefit obligation during the reporting period. Disclosures to be removed include those that identify amounts that are expected to be reclassified out of AOCI and into the income statement in the coming year and the anticipated impact of a one-percentage point change in assumed health care cost trend rate on service and interest cost and on the accumulated benefit obligation. The amendments are effective for annual reporting periods beginning after December 15, 2020. The impacts of adoption are to the Company’s disclosures only.

Accounting for Long-Duration Insurance Contracts

In August 2018, the FASB issued guidance revising the accounting for certain long-duration insurance

contracts. The new guidance introduces material changes to the measurement of the Company’s reserves for traditional life, life-contingent immediate annuities and certain voluntary accident and health insurance products.

Under the new guidance, measurement assumptions, including those for mortality, morbidity and policy terminations, will be required to be reviewed and updated at least annually. The effect of updating measurement assumptions other than the discount rate are required to be measured on a retrospective basis and reported in net income. In addition, reserves under the new guidance are required to be discounted using an upper medium grade fixed income instrument yield required to be updated through OCI at each reporting date. Current GAAP requires reserves to utilize assumptions set at policy issuance unless updated current assumptions indicate that recorded reserves are deficient.

The new guidance also requires DAC and other capitalized balances currently amortized in proportion to premiums or gross profits to be amortized on a constant level basis over the expected term for all long-duration insurance contracts. DAC will not be subject to loss recognition testing but will be reduced when actual lapse experience exceeds expected experience. The new guidance will no longer require adjustments to DAC and deferred sales inducement costs (“DSI”) related to unrealized gains and losses on investment securities supporting the related business.

All market risk benefit product features will be measured at fair value with changes in fair value recorded in net income with the exception of changes in the fair value attributable to changes in the reporting entity’s own credit risk, which are required to be recognized in OCI. Substantially all of the Company’s market risk benefits are reinsured and therefore these impacts are not expected to be material to the Company.

The new guidance will be included in the comparable financial statements issued in reporting periods beginning after December 15, 2021, thereby requiring restatement of prior periods presented. Early adoption is permitted. The new guidance will be applied to affected contracts and DAC on the basis of existing carrying amounts at the earliest period presented or retrospectively using actual historical experience as of contract inception. The new guidance for market risk benefits is required to be adopted retrospectively.

The Company is evaluating the anticipated impacts of applying the new guidance to both retained income and AOCI. The requirements of the new guidance represent a material change from existing GAAP, however, the underlying economics of the business and related cash flows are unchanged. The Company is evaluating the specific impacts of adopting the new guidance and anticipates the financial statement impact of adopting the new guidance to be material, largely attributed to the impact of transitioning to a discount rate based on an upper-medium grade fixed income investment yield

and updates to mortality assumptions. The Company expects the most significant impacts will occur in the run-off annuity segment. The revised accounting for DAC will be applied prospectively using the new model and any DAC effects existing in AOCI as a result of applying existing GAAP at the date of adoption will be reversed.

Simplifications to the Accounting for Income Taxes

In December 2019, the FASB issued amendments to simplify the accounting for income taxes. The amendments eliminate certain exceptions in the existing guidance including those related to intraperiod tax allocation and deferred tax liability recognition when changes in control of equity method and foreign subsidiary investments occur. The amendments require recognition of the effect of an enacted change in tax laws or rates in the interim period that includes the enactment date, provide an option to not allocate taxes to a legal entity that is not subject to tax as well as other minor changes. The amendments are effective for interim and annual reporting periods beginning after December 15, 2020. The new guidance specifies which amendments should be applied prospectively, retrospective to all periods presented or on a modified retrospective basis through a cumulative-effect adjustment to retained income as of the beginning of the year of adoption. The impact of adoption is not expected to be material to the Company’s results of operations or financial position.

Change in accounting principle

projected benefit obligation and plan assets are immediately recognized in earnings and are referred to as pension and other postretirement remeasurement gains and losses on the Consolidated Statements of Operations. Previously, actuarial gains and losses and differences between the expected and actual returns on plan assets were recognized as a component of AOCI, and were subject to amortization into earnings in future periods. This change has been applied on a retrospective basis. The Company’s policy is to remeasure its pension and postretirement plans on a quarterly basis.

The Company also changed its policy for recognizing expected returns on plan assets by eliminating the permitted accounting practice allowing the five-year smoothing of equity returns and moving to an unadjusted fair value method.

The Company believes that immediately recognizing remeasurement of projected benefit obligation and plan assets in earnings is preferable as it provides greater transparency of the Company’s economic obligations in accounting results and better aligns with fair value accounting principles by recognizing the effects of economic and interest rate changes on pension and other postretirement plan assets and liabilities in the year in which the gains and losses are incurred. These changes have been applied on a retrospective basis and as of January 1, 2017 resulted in a cumulative effect decrease to retained income of $1.58 billion, with a corresponding offset to AOCI and had no impact on total shareholders’ equity.

The impacts of the adjustments on the financial statements are summarized in the following tables.



Consolidated Statements of Operations
	Previous accounting principle		Impact of change ⁽¹⁾			As reported
($ in millions, except per share data)	Year Ended December 31, 2019
Property and casualty insurance claims and claims expense	$	24,074	$	(98	)	$	23,976
Operating costs and expenses	5,752		(62		)	5,690
Pension and other postretirement remeasurement gains and losses	—		114			114
Restructuring and related charges	41		—			41
Total costs and expenses	38,638		(46		)	38,592
Income from operations before income tax expense	6,043		46			6,089
Income tax expense	1,232		10			1,242
Net income	4,811		36			4,847
Net income applicable to common shareholders	$	4,642	$	36		$	4,678

Earnings per common share:
Net income applicable to common shareholders per common share - Basic	$	14.14	$	0.11		$	14.25
Net income applicable to common shareholders per common share - Diluted	$	13.92	$	0.11		$	14.03

⁽¹⁾ The Company merged two of its pension plans, which had no impact on its financial statements as the Company remeasures pension plan assets and projected benefit obligations immediately in earnings on a quarterly basis. However, the plan merger increased the impact of change by $41 million for 2019, reflecting the shorter amortization period for losses deferred in AOCI from one of the merged plans that was required as part of the merger.



Consolidated Statements of Operations
	Previous accounting principle		Change in accounting principle			As adjusted
	Year Ended December 31, 2018
Property and casualty insurance claims and claims expense	$	22,839	$	(61	)	$	22,778
Operating costs and expenses	5,869		(275		)	5,594
Pension and other postretirement remeasurement gains and losses	—		468			468
Restructuring and related charges	83		(16		)	67
Total costs and expenses	37,077		116			37,193
Income from operations before income tax expense	2,744		(116		)	2,628
Income tax expense	492		(24		)	468
Net income	2,252		(92		)	2,160
Net income applicable to common shareholders	$	2,104	$	(92	)	$	2,012

Earnings per common share:
Net income applicable to common shareholders per common share - Basic	$	6.05	$	(0.27	)	$	5.78
Net income applicable to common shareholders per common share - Diluted	$	5.96	$	(0.26	)	$	5.70

	Year Ended December 31, 2017
Property and casualty insurance claims and claims expense	$	21,929	$	(82	)	$	21,847
Operating costs and expenses	5,442		(246		)	5,196
Pension and other postretirement remeasurement gains and losses	—		(217		)	(217		)
Restructuring and related charges	109		(13		)	96
Total costs and expenses	35,436		(558		)	34,878
Income from operations before income tax expense	3,991		558			4,549
Income tax expense	802		193			995
Net income	3,189		365			3,554
Net income applicable to common shareholders	$	3,073	$	365		$	3,438

Earnings per common share:
Net income applicable to common shareholders per common share - Basic	$	8.49	$	1.01		$	9.50
Net income applicable to common shareholders per common share - Diluted	$	8.36	$	0.99		$	9.35



Consolidated Statements of Comprehensive Income
	Previous accounting principle			Impact of change			As reported
($ in millions)	Year Ended December 31, 2019
Net income	$	4,811		$	36		$	4,847

Other comprehensive income (loss), after-tax
Changes in:
Unrealized net capital gains and losses	1,889			—			1,889
Unrealized foreign currency translation adjustments	(4		)	(6		)	(10		)
Unrecognized pension and other postretirement benefit cost⁽¹⁾	141			(188		)	(47		)
Other comprehensive income, after-tax	2,026			(194		)	1,832

Comprehensive income	6,837			(158		)	6,679

	Year Ended December 31, 2018
Net income	$	2,252		$	(92	)	$	2,160

Other comprehensive income (loss), after-tax
Changes in:
Unrealized net capital gains and losses	(754		)	—			(754		)
Unrealized foreign currency translation adjustments	(55		)	7			(48		)
Unrecognized pension and other postretirement benefit cost⁽¹⁾	(144		)	85			(59		)
Other comprehensive loss, after-tax	(953		)	92			(861		)

Comprehensive income	1,299			—			1,299

	Year Ended December 31, 2017
Net income	$	3,189		$	365		$	3,554

Other comprehensive income (loss), after-tax
Changes in:
Unrealized net capital gains and losses	319			—			319
Unrealized foreign currency translation adjustments	47			(2		)	45
Unrecognized pension and other postretirement benefit cost⁽¹⁾	307			(359		)	(52		)
Other comprehensive income, after-tax	673			(361		)	312

Comprehensive income	3,862			4			3,866

⁽¹⁾ Financial statement line item has been updated to “Unamortized pension and other postretirement prior service credit“.



Consolidated Statements of Financial Position
	Previous accounting principle		Impact of change		As reported
($ in millions)	December 31, 2019
Retained income	49,713		(1,639	)	48,074
Unrealized foreign currency translation adjustments	(68	)	9		(59	)
Unrecognized pension and other postretirement benefit cost⁽¹⁾	(1,350	)	1,472		122
Total AOCI	469		1,481		1,950
Total shareholders’ equity	26,156		(158	)	25,998

	December 31, 2018
Retained income	45,708		(1,675	)	44,033
Unrealized foreign currency translation adjustments	(64	)	15		(49	)
Unrecognized pension and other postretirement benefit cost⁽¹⁾	(1,491	)	1,660		169
Total AOCI	(1,557	)	1,675		118
Total shareholders’ equity	21,312		—		21,312

⁽¹⁾ Financial statement line item has been updated to “Unamortized pension and other postretirement prior service credit“.



Consolidated Statements of Shareholders’ Equity
($ in millions)	Previous accounting principle			Impact of change			As reported
	Year Ended December 31, 2019
Retained income
Balance, beginning of year	$	45,708		$	(1,675	)	$	44,033
Cumulative effect of change in accounting principle	21			—			21
Net income	4,811			36			4,847
Dividends on common stock (declared per share of $2.00)	(658		)	—			(658		)
Dividends on preferred stock	(169		)	—			(169		)
Balance, end of year	49,713			(1,639		)	48,074

Accumulated other comprehensive income (loss)
Balance, beginning of year	(1,557		)	1,675			118
Cumulative effect of change in accounting principle	—			—			—
Change in unrealized net capital gains and losses	1,889			—			1,889
Change in unrealized foreign currency translation adjustments	(4		)	(6		)	(10		)
Change in unrecognized pension and other postretirement benefit cost ⁽¹⁾	141			(188		)	(47		)
Balance, end of year	$	469		$	1,481		$	1,950

	Year Ended December 31, 2018
Retained income
Balance, beginning of year	$	43,162		$	(1,583	)	$	41,579
Cumulative effect of change in accounting principle	1,088			—			1,088
Net income	2,252			(92		)	2,160
Dividends on common stock (declared per share of $1.84)	(646		)	—			(646		)
Dividends on preferred stock	(148		)	—			(148		)
Balance, end of year	45,708			(1,675		)	44,033

Accumulated other comprehensive income (loss)
Balance, beginning of year	306			1,583			1,889
Cumulative effect of change in accounting principle	(910		)	—			(910		)
Change in unrealized net capital gains and losses	(754		)	—			(754		)
Change in unrealized foreign currency translation adjustments	(55		)	7			(48		)
Change in unrecognized pension and other postretirement benefit cost ⁽¹⁾	(144		)	85			(59		)
Balance, end of year	(1,557		)	1,675			118

	Year Ended December 31, 2017
Retained income
Balance, beginning of year	$	40,678		$	(1,669	)	$	39,009
Net income	3,189			365			3,554
Dividends on common stock (declared per share of $1.48)	(540		)	—			(540		)
Dividends on preferred stock	(116		)	—			(116		)
Reclassification of tax effects due to change in accounting principle	(49		)	(279		)	(328		)
Balance, end of year	43,162			(1,583		)	41,579

Accumulated other comprehensive income (loss)
Balance, beginning of year	(416		)	1,665			1,249
Change in unrealized net capital gains and losses	319			—			319
Change in unrealized foreign currency translation adjustments	47			(2		)	45
Change in unrecognized pension and other postretirement benefit cost ⁽¹⁾	307			(359		)	(52		)
Reclassification of tax effects due to change in accounting principle	49			279			328
Balance, end of year	306			1,583			1,889

⁽¹⁾ Financial statement line item has been updated to “Change in unamortized pension and other postretirement prior service credit”.



Consolidated Statements of Cash Flows
	Previous accounting principle			Impact of change			As reported
($ in millions)	Year Ended December 31, 2019
Cash flows from operating activities
Net income	$	4,811		$	36		$	4,847
Adjustments to reconcile net income to net cash provided by operating activities:
Pension and other postretirement measurement gains and losses	—			114			114
Income taxes	477			10			487
Other operating assets and liabilities	110			(160		)	(50		)
Net cash provided by operating activities	$	5,129		$	—		$	5,129

	Year Ended December 31, 2018
Cash flows from operating activities
Net income	$	2,252		$	(92	)	$	2,160
Adjustments to reconcile net income to net cash provided by operating activities:
Pension and other postretirement measurement gains and losses	—			468			468
Income taxes	(356		)	(24		)	(380		)
Other operating assets and liabilities	1,207			(352		)	855
Net cash provided by operating activities	$	5,175		$	—		$	5,175

	Year Ended December 31, 2017
Cash flows from operating activities
Net income	$	3,189		$	365		$	3,554
Adjustments to reconcile net income to net cash provided by operating activities:
Pension and other postretirement measurement gains and losses	—			(217		)	(217		)
Income taxes	(245		)	193			(52		)
Other operating assets and liabilities	328			(341		)	(13		)
Net cash provided by operating activities	$	4,314		$	—		$	4,314

Benefit Plans - Changes not yet recognized (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Pension benefits
Change in items not yet recognized as a component of defined benefit plans, net periodic cost
Items not yet recognized as a component of net cost – December 31, 2018	$ (198)
Prior service credit amortized to net cost	56
Items not yet recognized as a component of net cost – December 31, 2019	(142)
Postretirement benefits
Change in items not yet recognized as a component of defined benefit plans, net periodic cost
Items not yet recognized as a component of net cost – December 31, 2018	(16)
Prior service credit amortized to net cost	3
Items not yet recognized as a component of net cost – December 31, 2019	$ (13)

Summary of Significant Accounting Policies - Intangible assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 126	$ 105	$ 99
2020	109
2021	91
2022	74
2023	60
2024	45
Thereafter	64
Total amortization	443
Accumulated amortization on intangible assets	633	572
Intangible assets by type	481	713
Impairment of intangible assets (Excluding Goodwill)	$ 106
Customers relationships
Finite-Lived Intangible Assets [Line Items]
Finite-Lived intangible asset, useful life	10 years
Intangible assets by type	$ 419	530
Technology and other
Finite-Lived Intangible Assets [Line Items]
Intangible assets by type	$ 24	40
Technology-Based Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Finite-Lived intangible asset, useful life	5 years
Other Intangible Assets
Finite-Lived Intangible Assets [Line Items]
Finite-Lived intangible asset, useful life	7 years
Trade names and licenses
Finite-Lived Intangible Assets [Line Items]
Intangible assets by type	$ 38	$ 143

Income Taxes - Reconciliation of income tax rate (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Total costs and expenses	$ 6,089	$ 2,628	$ 4,549
Statutory federal income tax rate on income from operations	1,279	552	1,592
Tax credits	(33)	(34)	(59)
Share-based payments	(24)	(16)	(63)
Tax-exempt income	(27)	(24)	(32)
State income taxes	41	27	21
Tax Legislation benefit	0	(29)	(509)
Non-deductible goodwill impairment	0	0	44
Other	6	(8)	1
Total income tax expense	$ 1,242	$ 468	$ 995
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation
Statutory federal income tax rate on income from operations	21.00%	21.00%	35.00%
Tax credits	(0.50%)	(1.30%)	(1.30%)
Share-based payments	(0.40%)	(0.60%)	(1.40%)
Tax-exempt income	(0.40%)	(0.90%)	(0.70%)
State income taxes	0.70%	1.00%	0.50%
Tax Legislation benefit	0.00%	(1.10%)	(11.20%)
Non-deductible goodwill impairment	0.00%	0.00%	1.00%
Other	0.00%	(0.30%)	0.00%
Effective income tax rate on income from operations	20.40%	17.80%	21.90%

Investments - Securities loaned and Other (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Securities loaned
Fixed income and equity securities loaned	$ 1,740	$ 1,400
Interest Income on collateral, net of fees	5	4	$ 7
Other investment information
Short-term Investments	4,260
Other	4,005	3,852
Below investment grade assets	7,150	5,230
Fixed income securities and short-term investments deposited with regulatory authorities	147
Non-income producing fixed income securities and other investments	40
Bank loans
Other investment information
Other	1,204	1,350
Real estate
Other investment information
Other	1,005	791
Policy loans
Other investment information
Other	894	891
Agent loans
Other investment information
Other	666	620
Derivatives and other
Other investment information
Other	$ 236	$ 200
California
Municipal Bonds
Percentage of municipal bonds carrying value	12.70%	12.30%
Texas
Municipal Bonds
Percentage of municipal bonds carrying value	8.60%	7.40%
Colorado
Municipal Bonds
Percentage of municipal bonds carrying value	5.80%	4.00%
Washington
Municipal Bonds
Percentage of municipal bonds carrying value	5.50%	6.20%
New Jersey
Municipal Bonds
Percentage of municipal bonds carrying value	3.70%	5.60%
Stockholders' Equity, Total \| Credit Concentration Risk \| Minimum
Municipal Bonds
Percentage of credit concentration risk of single issuer and affiliates of shareholder's equity	10.00%

Deferred Policy Acquisition and Sales Inducement Costs (Tables)

12 Months Ended

Dec. 31, 2019

Deferred Policy Acquisition and Sales Inducement Costs

Schedule of deferred policy acquisition costs



Deferred policy acquisition costs activity
	For the years ended December 31,
($ in millions)	2019			2018			2017
Balance, beginning of year	$	4,784		$	4,191		$	3,954
SquareTrade acquisition	—			—			66
Acquisition costs deferred	5,622			5,663			5,001
Amortization charged to income	(5,533		)	(5,222		)	(4,784		)
Effect of unrealized gains and losses	(174		)	152			(46		)
Balance, end of year	$	4,699		$	4,784		$	4,191

Schedule of DSI activity for Allstate Financial



Deferred sales inducement costs activity ⁽¹⁾
	For the years ended December 31,
($ in millions)	2019			2018			2017
Balance, beginning of year	$	34		$	36		$	40
Amortization charged to income	(5		)	(4		)	(4		)
Effect of unrealized gains and losses	(2		)	2			—
Balance, end of year	$	27		$	34		$	36

⁽¹⁾

Reinsurance and Indemnification - 2019-1 PCS Excess Agreement (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) state
Ceded Credit Risk [Line Items]
Limit of aggregate losses under aggregate excess agreement	$ 3,400
2019-1 Excess Catastrophe Reinsurance Contract
Ceded Credit Risk [Line Items]
Number of states covered by reinsurance agreement \| state	49
Retention percentage of reinsurance limit	75.00%
Retention amount for catastrophe reinsurance agreement contracts	$ 400
Retention amount annual limit	$ 2,750
Co-participation percentage	5.00%
Retention amount for catastrophe reinsurance agreement contracts, losses in excess	$ 3,070
Minimum \| 2019-1 Excess Catastrophe Reinsurance Contract
Ceded Credit Risk [Line Items]
Retention amount for catastrophe reinsurance agreement contracts	3,540
Maximum \| 2019-1 Excess Catastrophe Reinsurance Contract
Ceded Credit Risk [Line Items]
Retention amount for catastrophe reinsurance agreement contracts	$ 3,940

Other Comprehensive Income

12 Months Ended

Dec. 31, 2019

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

Other Comprehensive Income



Note 20	Other Comprehensive Income



Components of other comprehensive income (loss) on a pre-tax and after-tax basis
	For the years ended December 31,
($ in millions)	2019									2018								2017
	Pre-tax			Tax			After-tax			Pre-tax			Tax		After-tax			Pre-tax			Tax			After-tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$	2,807		$	(592	)	$	2,215		$	(1,142	)	$	241	$	(901	)	$	866		$	(304	)	$	562
Less: reclassification adjustment of realized capital gains and losses	413			(87		)	326			(186		)	39		(147		)	374			(131		)	243
Unrealized net capital gains and losses	2,394			(505		)	1,889			(956		)	202		(754		)	492			(173		)	319
Unrealized foreign currency translation adjustments	(13		)	3			(10		)	(61		)	13		(48		)	69			(24		)	45
Unamortized pension and other postretirement prior service credit	(59		)	12			(47		)	(77		)	18		(59		)	(80		)	28			(52		)
Other comprehensive income (loss)	$	2,322		$	(490	)	$	1,832		$	(1,094	)	$	233	$	(861	)	$	481		$	(169	)	$	312

Reserve for Property-Liability Insurance Claims and Claims Expense - Rollforward of reserve for property and casualty insurance claims and claims expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Activity in the reserve for property-liability insurance claims and claims expense:
Balance as of January 1	$ 27,423	$ 26,325	$ 25,250
Less recoverables	(7,155)	(6,471)	(6,184)
Net balance as of January 1	20,268	19,854	19,066
Incurred claims and claims expense related to:
Current year	24,106	23,033	22,350
Prior years	(130)	(255)	(503)
Total incurred	23,976	22,778	21,847
Claims and claims expense paid related to:
Current year	(15,160)	(14,877)	(14,112)
Prior years	(8,284)	(7,487)	(6,964)
Total paid	(23,444)	(22,364)	(21,076)
Net balance as of December 31	20,800	20,268	19,854
Plus recoverables	(6,912)	(7,155)	(6,471)
Balance as of December 31	27,712	27,423	26,325
SquareTrade
Activity in the reserve for property-liability insurance claims and claims expense:
SquareTrade acquisition as of January 3, 2017	$ 0	$ 0	$ 17

Reinsurance and Indemnification - Reinsurance recoverables on paid and unpaid benefits (Details) - Allstate Annuities - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Reinsurance Retention Policy [Line Items]
Reinsurance and indemnification recoverables, net	$ 2,187	$ 2,299
Annuities
Reinsurance Retention Policy [Line Items]
Reinsurance and indemnification recoverables, net	1,305	1,381
Life insurance
Reinsurance Retention Policy [Line Items]
Reinsurance and indemnification recoverables, net	749	776
Other
Reinsurance Retention Policy [Line Items]
Reinsurance and indemnification recoverables, net	$ 133	$ 142

Reinsurance and Indemnification - California E&S Earthquake Contract (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Ceded Credit Risk [Line Items]
Ceded premium earned	$ 1,407	$ 1,306	$ 1,274
Limit of aggregate losses under aggregate excess agreement	$ 3,400
E&S Earthquake Agreement
Ceded Credit Risk [Line Items]
Term of catastrophe reinsurance agreement contract	3 years
Catastrophe insurance, quota share basis, percentage	100.00%
Limit of aggregate losses under aggregate excess agreement	$ 400

Reinsurance and Indemnification - 2018-1 Excess Catastrophe Reinsurance Contract (Details) $ in Millions	9 Months Ended	12 Months Ended
	Dec. 31, 2017 USD ($)	Dec. 31, 2019 USD ($) state	Mar. 31, 2019 USD ($)
Reinsurance Retention Policy [Line Items]
Limit of aggregate losses under aggregate excess agreement		$ 3,400
2018-1 Excess Catastrophe Reinsurance Contract
Reinsurance Retention Policy [Line Items]
Number of states covered under reinsurance agreement \| state		49
Limit of aggregate losses under aggregate excess agreement	$ 500	$ 500	$ 500
Term of catastrophe reinsurance agreement contract		4 years
Retention percentage of reinsurance limit		100.00%	100.00%
Minimum \| 2018-1 Excess Catastrophe Reinsurance Contract
Reinsurance Retention Policy [Line Items]
Retention amount for catastrophe reinsurance agreement contracts		$ 3,940	$ 4,360
Maximum \| 2018-1 Excess Catastrophe Reinsurance Contract
Reinsurance Retention Policy [Line Items]
Retention amount for catastrophe reinsurance agreement contracts		$ 4,440	$ 4,860

Summary of Significant Accounting Policies - Securities loaned and Recognition of premium revenues and contract charges, and related benefits and interest credited (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Securities loaned
Cash collateral received as percentage of fair value of domestic securities loaned	102.00%
Cash collateral received as a percent of fair value of foreign securities loaned	105.00%
Deferred Policy Acquisition and Sales Inducement Costs
Unearned premiums	$ 15,343	$ 14,510
Valuation allowance for uncollectible premium installment receivables	90	77
Present value of future profits	39	45
Amortization expense of present value of future profits	6	$ 2	$ 6
Allstate Protection
Deferred Policy Acquisition and Sales Inducement Costs
Unearned premiums	12,570
Service Businesses
Deferred Policy Acquisition and Sales Inducement Costs
Unearned premiums	$ 2,760
Minimum
Deferred Policy Acquisition and Sales Inducement Costs
Period for amortization of DAC and DSI for interest-sensitive life, fixed annuities and other investment contracts	15 years
Maximum
Securities loaned
Securities lending transactions length	30 days
Deferred Policy Acquisition and Sales Inducement Costs
Period for amortization of DAC and DSI for interest-sensitive life, fixed annuities and other investment contracts	30 years
Personal Lines [Member] \| Minimum
Deferred Policy Acquisition and Sales Inducement Costs
Property and casualty insurance contract, terms	6 months
Period for amortization of DAC for property-liability insurance	6 months
Personal Lines [Member] \| Maximum
Deferred Policy Acquisition and Sales Inducement Costs
Property and casualty insurance contract, terms	12 months
Period for amortization of DAC for property-liability insurance	12 months
Interest-sensitive life insurance contract charges \| Minimum
Deferred Policy Acquisition and Sales Inducement Costs
Period for amortization of DAC and DSI for interest-sensitive life, fixed annuities and other investment contracts	10 years
Interest-sensitive life insurance contract charges \| Maximum
Deferred Policy Acquisition and Sales Inducement Costs
Period for amortization of DAC and DSI for interest-sensitive life, fixed annuities and other investment contracts	20 years
Protection Plans and Other Contracts [Member] \| Minimum
Deferred Policy Acquisition and Sales Inducement Costs
Period for amortization of DAC for property-liability insurance	1 year
Protection Plans and Other Contracts [Member] \| Maximum
Deferred Policy Acquisition and Sales Inducement Costs
Period for amortization of DAC for property-liability insurance	5 years

Equity Incentive Plans

12 Months Ended

Dec. 31, 2019

Equity Incentive Plans [Abstract]

Equity Incentive Plans



Note 18	Equity Incentive Plans

The Company currently has equity incentive plans under which the Company grants nonqualified stock options, restricted stock units and performance stock awards to certain employees and directors of the Company. The total compensation expense related to equity awards was $105 million, $125 million and $106 million and the total income tax benefits were $17 million, $22 million and $22 million for 2019, 2018 and 2017, respectively. Total cash received from the exercise of options was $154 million, $92 million and $178 million for 2019, 2018 and 2017, respectively. Total tax benefit realized on options exercised and the release of stock restrictions was $43 million, $28 million and $96 million for 2019, 2018 and 2017, respectively.

The Company records compensation expense related to awards under these plans over the shorter of the period in which the requisite service is rendered or retirement eligibility is attained. Compensation expense for performance share awards is based on the probable number of awards expected to vest using the performance level most likely to be achieved at the end of the performance period. As of December 31, 2019, total unrecognized compensation cost related to all nonvested awards was $79 million, of which $29 million related to nonqualified stock options which is expected to be recognized over the weighted average vesting period of 1.68 years, $21 million related to restricted stock units which is expected to be recognized over the weighted average vesting period of 1.69 years and $29 million related to performance stock awards which is expected to be recognized over the weighted average vesting period of 1.55 years.

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

Restricted stock units for directors vest immediately and convert into shares of stock on the earlier of the day of the third anniversary of the grant

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

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

Since 2001, a total of 110.8 million shares of common stock were authorized to be used for awards under the plans, subject to adjustment in accordance with the plans’ terms. As of December 31, 2019, 24.0 million shares were reserved and remained available for future issuance under these plans. The Company uses its treasury shares for these issuances.

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



Option grant assumptions
	2019		2018		2017
Weighted average expected term	5.8 years		5.7 years		6.1 years
Expected volatility	15.6 - 28.9%		15.6 - 30.7%		15.7 - 32.7%
Weighted average volatility	18.4	%	19.8	%	21.0	%
Expected dividends	1.9 - 2.2%		1.5 - 2.2%		1.4 - 1.9%
Weighted average expected dividends	2.2	%	2.0	%	1.9	%
Risk-free rate	1.3 - 2.7%		1.3 - 3.2%		0.5 - 2.5%



Summary of option activity
	For the year ended December 31, 2019
	Number (in 000s)		Weighted average exercise price		Aggregate intrinsic value (in 000s)		Weighted average remaining contractual term (years)
Outstanding as of January 1, 2019	11,730		$	65.82
Granted	2,802		92.66
Exercised	(2,622	)	58.70
Forfeited	(235	)	89.20
Expired	(4	)	31.78
Outstanding as of December 31, 2019	11,671		73.40		$	455,691	6.3
Outstanding, net of expected forfeitures	11,547		73.20		453,268		6.3
Outstanding, exercisable (“vested”)	6,744		60.81		348,285		4.8

The weighted average grant date fair value of options granted was $14.96, $17.03 and $14.60 during 2019, 2018 and 2017, respectively. The intrinsic value, which is the difference between the fair value and the exercise price, of options exercised was $114 million, $72 million and $199 million during 2019, 2018 and 2017, respectively.



Changes in restricted stock units
	For the year ended December 31, 2019
	Number (in 000s)		Weighted average grant date fair value
Nonvested as of January 1, 2019	957		$	74.58
Granted	271		92.97
Vested	(308	)	62.89
Forfeited	(43	)	84.75
Nonvested as of December 31, 2019	877		83.87

The fair value of restricted stock units is based on the market value of the Company’s stock as of the date of the grant. The market value in part reflects the payment of future dividends expected. The weighted average grant date fair value of restricted stock units granted was $92.97, $93.16 and $80.12 during 2019, 2018 and 2017, respectively. The total fair value of restricted stock units vested was $29 million, $47 million and $58 million during 2019, 2018 and 2017, respectively.



Changes in performance stock awards
	For the year ended December 31, 2019
	Number (in 000s)		Weighted average grant date fair value
Nonvested as of January 1, 2019	1,248		$	77.35
Granted	415		92.49
Adjustment for performance achievement	267		62.32
Vested	(702	)	62.32
Forfeited	(47	)	87.83
Nonvested as of December 31, 2019	1,181		87.78

The change in performance stock awards comprises those initially granted in 2019 and the adjustment to previously granted performance stock awards for performance achievement. The fair value of performance stock awards is based on the market value of the Company’s stock as of the date of the grant. The market value in part reflects the payment of future dividends expected. The weighted average grant date fair value of performance stock awards granted was $92.49, $92.88 and $78.47 during 2019, 2018 and 2017, respectively. The total fair value of performance stock awards vested was $65 million, $15 million and $17 million during 2019, 2018 and 2017, respectively.

The Company recognizes all tax effects related to share-based payments at settlement or expiration through the income statement.

Fair Value of Assets and Liabilities - Rollforward of level 3 assets and liabilities held at fair value (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets
Balance at beginning of period	$ 697	$ 837	$ 735
Total gains (losses) included in: net income	30	37	22
Total gains (losses) included in: OCI	6	(6)	15
Transfers into Level 3	158	79	94
Transfers out of Level 3	(330)	(325)	(369)
Purchases	375	367	533
Sales	(173)	(208)	(113)
Issues	0	0	0
Settlements	(25)	(84)	(80)
Balance at end of period	738	697	837
Liabilities
Balance at beginning of period	(224)	(286)	(290)
Total gains (losses) included in: net income	(61)	58	0
Total gains (losses) included in: OCI	0	0	0
Transfers into Level 3	(175)	0	0
Transfers out of Level 3	0	0	0
Purchases	0	0	0
Sales	0	0	0
Issues	(16)	(2)	(2)
Settlements	14	6	6
Balance at end of period	(462)	(224)	(286)
Fair value assets and liabilities measured on recurring basis, gain (loss) included in earnings
Gain (loss) included in earnings	(31)	95	22
Assets transferred between Level 1 and Level 2	0	0	0
Liabilities transferred between Level 1 and Level 2	0	0	0
Net investment income
Assets
Total gains (losses) included in: net income	(2)	0	19
Realized capital gains (losses)
Assets
Total gains (losses) included in: net income	32	37	4
Life and annuity contract benefits
Assets
Total gains (losses) included in: net income	7	(5)	9
Interest credited to contractholder funds
Assets
Total gains (losses) included in: net income	(68)	63	(10)
Contractholder funds: Derivatives embedded in life and annuity contracts
Liabilities
Balance at beginning of period	(224)	(286)	(290)
Total gains (losses) included in: net income	(61)	58	0
Total gains (losses) included in: OCI	0	0	0
Transfers into Level 3	(175)	0	0
Transfers out of Level 3	0	0	0
Purchases	0	0	0
Sales	0	0	0
Issues	(16)	(2)	(2)
Settlements	14	6	6
Balance at end of period	(462)	(224)	(286)
Municipal
Assets
Balance at beginning of period	70	101	125
Total gains (losses) included in: net income	1	1	(1)
Total gains (losses) included in: OCI	4	(2)	7
Transfers into Level 3	0	0	0
Transfers out of Level 3	(5)	(26)	(6)
Purchases	0	10	8
Sales	(5)	(8)	(29)
Issues	0	0	0
Settlements	(3)	(6)	(3)
Balance at end of period	62	70	101
Corporate - public
Assets
Balance at beginning of period	70	108	78
Total gains (losses) included in: net income	0	0	0
Total gains (losses) included in: OCI	3	(3)	0
Transfers into Level 3	30	17	4
Transfers out of Level 3	(113)	(21)	(30)
Purchases	86	10	60
Sales	(11)	(38)	0
Issues	0	0	0
Settlements	(4)	(3)	(4)
Balance at end of period	61	70	108
Corporate - privately placed
Assets
Balance at beginning of period	90	224	263
Total gains (losses) included in: net income	(1)	(1)	8
Total gains (losses) included in: OCI	2	(3)	(2)
Transfers into Level 3	43	20	30
Transfers out of Level 3	(2)	(119)	(49)
Purchases	4	22	44
Sales	(13)	(5)	(30)
Issues	0	0	0
Settlements	(9)	(48)	(40)
Balance at end of period	114	90	224
ABS
Assets
Balance at beginning of period	69	147	69
Total gains (losses) included in: net income	1	0	0
Total gains (losses) included in: OCI	(1)	2	6
Transfers into Level 3	76	42	60
Transfers out of Level 3	(210)	(159)	(280)
Purchases	159	160	322
Sales	(22)	(97)	0
Issues	0	0	0
Settlements	(7)	(26)	(30)
Balance at end of period	65	69	147
MBS
Assets
Balance at beginning of period	26	26	23
Total gains (losses) included in: net income	0	0	0
Total gains (losses) included in: OCI	(2)	0	0
Transfers into Level 3	9	0	0
Transfers out of Level 3	0	0	0
Purchases	9	1	6
Sales	0	0	0
Issues	0	0	0
Settlements	(2)	(1)	(3)
Balance at end of period	40	26	26
Fixed income securities
Assets
Balance at beginning of period	325	606	558
Total gains (losses) included in: net income	1	0	7
Total gains (losses) included in: OCI	6	(6)	11
Transfers into Level 3	158	79	94
Transfers out of Level 3	(330)	(325)	(365)
Purchases	258	203	440
Sales	(51)	(148)	(59)
Issues	0	0	0
Settlements	(25)	(84)	(80)
Balance at end of period	342	325	606
Equity securities
Assets
Balance at beginning of period	341	210	163
Total gains (losses) included in: net income	30	37	13
Total gains (losses) included in: OCI	0	0	4
Transfers into Level 3	0	0	0
Transfers out of Level 3	0	0	(4)
Purchases	82	109	48
Sales	(82)	(15)	(14)
Issues	0	0	0
Settlements	0	0	0
Balance at end of period	371	341	210
Short-term investments
Assets
Balance at beginning of period	30	20	15
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	35	55	45
Sales	(40)	(45)	(40)
Issues	0	0	0
Settlements	0	0	0
Balance at end of period	25	30	20
Free-standing derivatives, net
Assets
Balance at beginning of period	1	1	(2)
Total gains (losses) included in: net income	(1)	0	3
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	1
Other assets
Assets
Balance at beginning of period		$ 0	1
Total gains (losses) included in: net income			(1)
Total gains (losses) included in: OCI			0
Transfers into Level 3			0
Transfers out of Level 3			0
Purchases			0
Sales			0
Issues			0
Settlements			0
Balance at end of period			$ 0

Supplemental Cash Flow Information - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Supplementary Insurance Information
Non-cash modifications of certain mortgage loans, fixed income securities, limited partnership interests and other investments, as well as mergers completed with equity securities	$ 198	$ 94	$ 106
Non-cash financing activities related to the issuance of shares for vested restricted stock units	50	$ 32	43
Liabilities assumed			$ 90
Right-of-use asset obtained in exchange for operating lease liability	604
Operating lease, payments	155
Accounting Standards Update 2016-02
Supplementary Insurance Information
Right-of-use asset obtained in exchange for operating lease liability	$ 488

Reinsurance and Indemnification - Per Occurrence Excess Agreement (Details) $ in Millions	9 Months Ended	12 Months Ended
	Dec. 31, 2017 USD ($)	Dec. 31, 2019 USD ($) state layer reinstatement	Mar. 31, 2019 USD ($)
Reinsurance Retention Policy [Line Items]
Limit of aggregate losses under aggregate excess agreement		$ 3,400
2018-1 Excess Catastrophe Reinsurance Contract
Reinsurance Retention Policy [Line Items]
Retention percentage of reinsurance limit		100.00%	100.00%
Limit of aggregate losses under aggregate excess agreement	$ 500	$ 500	$ 500
Number of states covered by reinsurance agreement \| state		49
Term of catastrophe reinsurance agreement contract		4 years
Catastrophe Reinsurance First Five Layers
Reinsurance Retention Policy [Line Items]
Number of layers subject to reinstatement in which catastrophe reinsurance agreement contracts are placed \| layer		3
Retention percentage of reinsurance limit		95.00%
Catastrophe Reinsurance Sixth Layer
Reinsurance Retention Policy [Line Items]
Retention percentage of reinsurance limit		95.00%
Limit of aggregate losses under aggregate excess agreement		$ 324
Term of catastrophe reinsurance agreement contract		7 years
Catastrophe Reinsurance Seventh Layer
Reinsurance Retention Policy [Line Items]
Retention percentage of reinsurance limit		29.37%
Retention amount for catastrophe reinsurance agreement contracts		$ 446
Number of reinstatements each year for each contract \| reinstatement		1
Minimum \| 2018-1 Excess Catastrophe Reinsurance Contract
Reinsurance Retention Policy [Line Items]
Retention amount for catastrophe reinsurance agreement contracts		$ 3,940	$ 4,360

Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Fixed income securities, at fair value, amortized cost (in dollars)	$ 56,293	$ 57,134
Equity securities, at fair value, cost (in dollars)	6,568	4,489
Short-term, at fair value, amortized cost (in dollars)	$ 4,256	$ 3,027
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)	92,500	79,800
Preferred stock, shares outstanding (in shares)	92,500	79,800
Preferred stock, shares aggregate liquidation preference (in dollars)	$ 2,313	$ 1,995
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)	319,000,000	332,000,000
Treasury stock, shares (in shares)	581,000,000	568,000,000

Reinsurance and Indemnification - Below FHCF Contract (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) limit
Reinsurance Retention Policy [Line Items]
Limit of aggregate losses under aggregate excess agreement	$ 3,400
Sanders Re 2014-2 contract
Reinsurance Retention Policy [Line Items]
Retention percentage of reinsurance limit	100.00%
Limit of aggregate losses under aggregate excess agreement	$ 200
Retention amount for catastrophe reinsurance agreement contracts	$ 20
Florida Excess Catastrophe Reinsurance Agreement, Provisional
Reinsurance Retention Policy [Line Items]
Retention percentage of reinsurance limit	100.00%
Number of limits available per contract year \| limit	3
Limit of aggregate losses under aggregate excess agreement	$ 34
Retention amount for catastrophe reinsurance agreement contracts	$ 20
Catastrophe reinsurance agreement contracts, number of limits remaining per a contract year \| limit	2

Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

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



Assets and liabilities measured at fair value
	As of December 31, 2019
($ 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			Total
Assets
Fixed income securities:
U.S. government and agencies	$	4,689		$	397		$	—					$	5,086
Municipal	—			8,558			62						8,620
Corporate - public	—			30,819			61						30,880
Corporate - privately placed	—			12,084			114						12,198
Foreign government	—			979			—						979
ABS	—			797			65						862
MBS	—			379			40						419
Total fixed income securities	4,689			54,013			342						59,044
Equity securities	7,407			384			371						8,162
Short-term investments	1,940			2,291			25						4,256
Other investments: Free-standing derivatives	—			180			—			(40		)	140
Separate account assets	3,044			—			—						3,044
Other assets	1			—			—						1
Total recurring basis assets	17,081			56,868			738			(40		)	74,647
Total assets at fair value	$	17,081		$	56,868		$	738		$	(40	)	$	74,647
% of total assets at fair value	22.9		%	76.2		%	1.0		%	(0.1		)%	100.0		%

Investments reported at NAV													1,814
Total													$	76,461

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(462	)				$	(462	)
Other liabilities: Free-standing derivatives	—			(84		)	—			$	12		(72		)
Total recurring basis liabilities	$	—		$	(84	)	$	(462	)	$	12		$	(534	)
% of total liabilities at fair value	—		%	15.7		%	86.5		%	(2.2		)%	100.0		%



Assets and liabilities measured at fair value
	As of December 31, 2018
($ 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			Total
Assets
Fixed income securities:
U.S. government and agencies	$	5,085		$	432		$	—					$	5,517
Municipal	—			9,099			70						9,169
Corporate - public	—			29,200			70						29,270
Corporate - privately placed	—			10,798			90						10,888
Foreign government	—			747			—						747
ABS	—			976			69						1,045
MBS	—			508			26						534
Total fixed income securities	5,085			51,760			325						57,170
Equity securities	4,364			331			341						5,036
Short-term investments	1,338			1,659			30						3,027
Other investments: Free-standing derivatives	—			139			1			$	(23	)	117
Separate account assets	2,805			—			—						2,805
Other assets	2			—			—						2
Total recurring basis assets	$	13,594		$	53,889		$	697		$	(23	)	$	68,157
% of total assets at fair value	19.9		%	79.1		%	1.0		%	—		%	100.0		%
Investments reported at NAV													1,779
Total													$	69,936
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(224	)				$	(224	)
Other liabilities: Free-standing derivatives	(1		)	(62		)	—			$	6		(57		)
Total recurring basis liabilities	$	(1	)	$	(62	)	$	(224	)	$	6		$	(281	)
% of total liabilities at fair value	0.3		%	22.1		%	79.7		%	(2.1		)%	100.0		%



Quantitative information about the significant unobservable inputs used in Level 3 fair value measurements
($ in millions)	Fair value			Valuation technique	Unobservable input	Range	Weighted average
December 31, 2019
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(430	)	Stochastic cash flow model	Projected option cost	1.0 - 4.2%	2.67%

December 31, 2018
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(185	)	Stochastic cash flow model	Projected option cost	1.0 - 2.2%	1.74%

Summary of quantitative information about the significant unobservable inputs



Quantitative information about the significant unobservable inputs used in Level 3 fair value measurements
($ in millions)	Fair value			Valuation technique	Unobservable input	Range	Weighted average
December 31, 2019
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(430	)	Stochastic cash flow model	Projected option cost	1.0 - 4.2%	2.67%

December 31, 2018
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(185	)	Stochastic cash flow model	Projected option cost	1.0 - 2.2%	1.74%

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



Rollforward of Level 3 assets and liabilities held at fair value during the year ended December 31, 2019
	Balance as of December 31, 2018			Total gains (losses) included in:						Transfers																	Balance as of December 31, 2019
($ in millions)	Balance as of December 31, 2018			Net income			OCI			Into Level 3			Out of Level 3			Purchases		Sales			Issues			Settlements			Balance as of December 31, 2019
Assets
Fixed income securities:
Municipal	$	70		$	1		$	4		$	—		$	(5	)	$	—	$	(5	)	$	—		$	(3	)	$	62
Corporate - public	70			—			3			30			(113		)	86		(11		)	—			(4		)	61
Corporate - privately placed	90			(1		)	2			43			(2		)	4		(13		)	—			(9		)	114
ABS	69			1			(1		)	76			(210		)	159		(22		)	—			(7		)	65
MBS	26			—			(2		)	9			—			9		—			—			(2		)	40
Total fixed income securities	325			1			6			158			(330		)	258		(51		)	—			(25		)	342
Equity securities	341			30			—			—			—			82		(82		)	—			—			371
Short-term investments	30			—			—			—			—			35		(40		)	—			—			25
Free-standing derivatives, net	1			(1		)	—			—			—			—		—			—			—			—
Total recurring Level 3 assets	697			30			6			158			(330		)	375		(173		)	—			(25		)	738
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	(224		)	(61		)	—			(175		)	—			—		—			(16		)	14			(462		)
Total recurring Level 3 liabilities	$	(224	)	$	(61	)	$	—		$	(175	)	$	—		$	—	$	—		$	(16	)	$	14		$	(462	)



Total Level 3 gains (losses) included in net income for the year ended December 31, 2019
($ in millions)	Net investment income			Realized capital gains and losses		Life contract benefits		Interest credited to contractholder funds			Total
Components of net income	$	(2	)	$	32	$	7	$	(68	)	$	(31	)



Rollforward of Level 3 assets and liabilities held at fair value during the year ended December 31, 2018
	Balance as of December 31, 2017			Total gains (losses) included in:						Transfers																Balance as of December 31, 2018
($ in millions)	Balance as of December 31, 2017			Net income			OCI			Into Level 3		Out of Level 3			Purchases		Sales			Issues			Settlements			Balance as of December 31, 2018
Assets
Fixed income securities:
Municipal	$	101		$	1		$	(2	)	$	—	$	(26	)	$	10	$	(8	)	$	—		$	(6	)	$	70
Corporate - public	108			—			(3		)	17		(21		)	10		(38		)	—			(3		)	70
Corporate - privately placed	224			(1		)	(3		)	20		(119		)	22		(5		)	—			(48		)	90
ABS	147			—			2			42		(159		)	160		(97		)	—			(26		)	69
MBS	26			—			—			—		—			1		—			—			(1		)	26
Total fixed income securities	606			—			(6		)	79		(325		)	203		(148		)	—			(84		)	325
Equity securities	210			37			—			—		—			109		(15		)	—			—			341
Short-term investments	20			—			—			—		—			55		(45		)	—			—			30
Free-standing derivatives, net	1			—			—			—		—			—		—			—			—			1
Total recurring Level 3 assets	$	837		$	37		$	(6	)	$	79	$	(325	)	$	367	$	(208	)	$	—		$	(84	)	$	697
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(286	)	$	58		$	—		$	—	$	—		$	—	$	—		$	(2	)	$	6		$	(224	)
Total recurring Level 3 liabilities	$	(286	)	$	58		$	—		$	—	$	—		$	—	$	—		$	(2	)	$	6		$	(224	)



Total Level 3 gains (losses) included in net income for the year ended December 31, 2018
($ in millions)	Net investment income		Realized capital gains and losses		Life contract benefits			Interest credited to contractholder funds		Total
Components of net income	$	—	$	37	$	(5	)	$	63	$	95



Rollforward of Level 3 assets and liabilities held at fair value during the year ended December 31, 2017
	Balance as of December 31, 2016			Total gains (losses) included in:						Transfers																Balance as of December 31, 2017
($ in millions)	Balance as of December 31, 2016			Net income			OCI			Into Level 3		Out of Level 3			Purchases		Sales			Issues			Settlements			Balance as of December 31, 2017
Assets
Fixed income securities:
Municipal	$	125		$	(1	)	$	7		$	—	$	(6	)	$	8	$	(29	)	$	—		$	(3	)	$	101
Corporate - public	78			—			—			4		(30		)	60		—			—			(4		)	108
Corporate - privately placed	263			8			(2		)	30		(49		)	44		(30		)	—			(40		)	224
ABS	69			—			6			60		(280		)	322		—			—			(30		)	147
MBS	23			—			—			—		—			6		—			—			(3		)	26
Total fixed income securities	558			7			11			94		(365		)	440		(59		)	—			(80		)	606
Equity securities	163			13			4			—		(4		)	48		(14		)	—			—			210
Short-term investments	15			—			—			—		—			45		(40		)	—			—			20
Free-standing derivatives, net	(2		)	3			—			—		—			—		—			—			—			1
Other assets	1			(1		)	—			—		—			—		—			—			—			—
Total recurring Level 3 assets	$	735		$	22		$	15		$	94	$	(369	)	$	533	$	(113	)	$	—		$	(80	)	$	837
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(290	)	$	—		$	—		$	—	$	—		$	—	$	—		$	(2	)	$	6		$	(286	)
Total recurring Level 3 liabilities	$	(290	)	$	—		$	—		$	—	$	—		$	—	$	—		$	(2	)	$	6		$	(286	)



Total Level 3 gains (losses) included in net income for the year ended December 31, 2017
($ in millions)	Net investment income		Realized capital gains and losses		Life contract benefits		Interest credited to contractholder funds			Total
Components of net income	$	19	$	4	$	9	$	(10	)	$	22

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



Valuation changes included in net income for Level 3 assets and liabilities held as of
	December 31,
($ in millions)	2019			2018			2017
Assets
Fixed income securities:
Municipal	$	1		$	—		$	(3	)
Corporate	—			—			1
Total fixed income securities	1			—			(2		)
Equity securities	6			36			13
Free-standing derivatives, net	(1		)	—			—
Other assets	—			—			(1		)
Total recurring Level 3 assets	$	6		$	36		$	10
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(61	)	$	58		$	—
Total recurring Level 3 liabilities	(61		)	58			—
Total included in net income	$	(55	)	$	94		$	10

Components of net income
Net investment income	$	(2	)	$	—		$	19
Realized capital gains and losses	8			36			(8		)
Life contract benefits	7			(5		)	9
Interest credited to contractholder funds	(68		)	63			(10		)
Total included in net income	$	(55	)	$	94		$	10

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



Carrying values and fair value estimates of financial instruments not carried at fair value
($ in millions)		December 31, 2019				December 31, 2018
Financial assets	Fair value level	Carrying value		Fair value		Carrying value		Fair value
Mortgage loans	Level 3	$	4,817	$	5,012	$	4,670	$	4,703
Bank loans	Level 3	1,204		1,185		1,350		1,298
Agent loans	Level 3	666		664		620		617

Financial liabilities
Contractholder funds on investment contracts	Level 3	8,438		9,158		9,250		9,665
Long-term debt	Level 2	6,631		7,738		6,451		6,708
Liability for collateral	Level 2	$	1,829	$	1,829	$	1,458	$	1,458

- 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

Reinsurance and Indemnification - Retention limits by period of policy issuance (Details) - Allstate Annuities - USD ($) $ in Millions	1 Months Ended	45 Months Ended		48 Months Ended	106 Months Ended
	Aug. 31, 1998	Dec. 31, 2018	Mar. 31, 2011	Mar. 31, 2015	Jun. 30, 2007
Reinsurance Retention Policy [Line Items]
Retention level per claim	$ 1		$ 5		$ 2
Retention level for contracts issued to individuals age 70 and over			3
Retention level for certain large contracts meeting specific criteria			$ 10		$ 5
Single life
Reinsurance Retention Policy [Line Items]
Retention level per claim		$ 2		$ 5
Retention level for contracts issued to individuals age 70 and over				3
Retention level for certain large contracts meeting specific criteria				10
Joint life
Reinsurance Retention Policy [Line Items]
Retention level per claim				8
Retention level for certain large contracts meeting specific criteria				$ 10

Schedule III - Supplementary Insurance Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Supplementary Insurance Information
Deferred policy acquisition costs	$ 4,699	$ 4,784	$ 4,191
Reserves for claims and claims expense, contract benefits and contractholder funds	57,704	58,002	58,308
Unearned premiums	15,343	14,510	13,473
Premium revenue and contract charges	38,577	36,513	34,678
Net investment income	3,159	3,240	3,401
Claims and claims expense, contract benefits and interest credited to contractholders	26,655	25,405	24,460
Amortization of deferred policy acquisition costs	5,533	5,222	4,784
Other operating costs and expenses	6,404	6,566	5,634
Premiums written (excluding life)	37,942	35,966	33,661
Intersegment Eliminations (2)
Supplementary Insurance Information
Deferred policy acquisition costs	0	0	0
Reserves for claims and claims expense, contract benefits and contractholder funds	0	0	0
Unearned premiums	0	0	0
Premium revenue and contract charges	(154)	(122)	(110)
Net investment income	0	0	0
Claims and claims expense, contract benefits and interest credited to contractholders	(9)	(7)	(6)
Amortization of deferred policy acquisition costs	0	0	0
Other operating costs and expenses	(145)	(115)	(104)
Premiums written (excluding life)	0	0	0
Allstate Protection \| Operating Segments
Supplementary Insurance Information
Deferred policy acquisition costs	1,624	1,618	1,510
Reserves for claims and claims expense, contract benefits and contractholder funds	25,843	25,495	24,336
Unearned premiums	12,567	11,953	11,409
Premium revenue and contract charges	34,843	32,950	31,433
Claims and claims expense, contract benefits and interest credited to contractholders	23,517	22,348	21,388
Amortization of deferred policy acquisition costs	4,649	4,475	4,205
Other operating costs and expenses	4,506	4,522	4,239
Premiums written (excluding life)	35,419	33,555	31,648
Discontinued Lines and Coverages \| Operating Segments
Supplementary Insurance Information
Deferred policy acquisition costs	0	0	0
Reserves for claims and claims expense, contract benefits and contractholder funds	1,818	1,864	1,893
Unearned premiums	0	0	0
Premium revenue and contract charges	0	0	0
Claims and claims expense, contract benefits and interest credited to contractholders	105	87	96
Amortization of deferred policy acquisition costs	0	0	0
Other operating costs and expenses	3	3	3
Premiums written (excluding life)	0	0	0
Property-Liability \| Operating Segments
Supplementary Insurance Information
Deferred policy acquisition costs	1,624	1,618	1,510
Reserves for claims and claims expense, contract benefits and contractholder funds	27,661	27,359	26,229
Unearned premiums	12,567	11,953	11,409
Premium revenue and contract charges	34,843	32,950	31,433
Net investment income	1,533	1,464	1,478
Claims and claims expense, contract benefits and interest credited to contractholders	23,622	22,435	21,484
Amortization of deferred policy acquisition costs	4,649	4,475	4,205
Other operating costs and expenses	4,509	4,525	4,242
Premiums written (excluding life)	35,419	33,555	31,648
Service Businesses \| Operating Segments
Supplementary Insurance Information
Deferred policy acquisition costs	1,449	1,290	954
Reserves for claims and claims expense, contract benefits and contractholder funds	51	64	96
Unearned premiums	2,765	2,546	2,052
Premium revenue and contract charges	1,387	1,220	977
Net investment income	42	27	16
Claims and claims expense, contract benefits and interest credited to contractholders	363	350	369
Amortization of deferred policy acquisition costs	543	463	296
Other operating costs and expenses	838	603	565
Premiums written (excluding life)	1,535	1,431	1,094
Allstate Life \| Operating Segments
Supplementary Insurance Information
Deferred policy acquisition costs	1,079	1,300	1,152
Reserves for claims and claims expense, contract benefits and contractholder funds	10,541	10,333	10,244
Unearned premiums	3	3	4
Premium revenue and contract charges	1,343	1,315	1,280
Net investment income	514	505	489
Claims and claims expense, contract benefits and interest credited to contractholders	1,154	1,094	1,047
Amortization of deferred policy acquisition costs	173	132	134
Other operating costs and expenses	356	364	344
Premiums written (excluding life)	0	0	0
Allstate Benefits \| Operating Segments
Supplementary Insurance Information
Deferred policy acquisition costs	527	549	541
Reserves for claims and claims expense, contract benefits and contractholder funds	1,950	1,905	1,869
Unearned premiums	8	8	8
Premium revenue and contract charges	1,145	1,135	1,084
Net investment income	83	77	72
Claims and claims expense, contract benefits and interest credited to contractholders	635	630	599
Amortization of deferred policy acquisition costs	161	145	142
Other operating costs and expenses	285	278	261
Premiums written (excluding life)	988	980	919
Allstate Annuities \| Operating Segments
Supplementary Insurance Information
Deferred policy acquisition costs	20	27	34
Reserves for claims and claims expense, contract benefits and contractholder funds	17,501	18,341	19,870
Unearned premiums	0	0	0
Premium revenue and contract charges	13	15	14
Net investment income	917	1,096	1,305
Claims and claims expense, contract benefits and interest credited to contractholders	890	903	967
Amortization of deferred policy acquisition costs	7	7	7
Other operating costs and expenses	30	31	34
Premiums written (excluding life)	0	0	0
Corporate and Other \| Operating Segments
Supplementary Insurance Information
Deferred policy acquisition costs	0	0	0
Reserves for claims and claims expense, contract benefits and contractholder funds	0	0	0
Unearned premiums	0	0	0
Premium revenue and contract charges	0	0	0
Net investment income	70	71	41
Claims and claims expense, contract benefits and interest credited to contractholders	0	0	0
Amortization of deferred policy acquisition costs	0	0	0
Other operating costs and expenses	531	880	292
Premiums written (excluding life)	$ 0	$ 0	$ 0

Reserve for Property-Liability Insurance Claims and Claims Expense - Average annual percentage payout of incurred claims by age, net of reinsurance (Details)	Dec. 31, 2019
Auto
Claims Development [Line Items]
1 year	40.00%
2 years	27.20%
3 years	12.90%
4 years	8.20%
5 years	4.90%
Auto insurance - physical damage coverage
Claims Development [Line Items]
1 year	97.00%
2 years	3.00%
3 years	(0.20%)
4 years	0.00%
5 years	0.00%
Homeowners
Claims Development [Line Items]
1 year	74.50%
2 years	18.90%
3 years	3.10%
4 years	1.40%
5 years	0.70%

Schedule II - Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Schedule II — Condensed Financial Information of Registrant

Schedule II — Condensed Financial Information of Registrant Statement of Operations



	Year Ended December 31,
($ in millions)	2019			2018			2017
Revenues
Investment income, less investment expense	$	35		$	25		$	10
Realized capital gains and losses	9			(10		)	(2		)
Other income	41			3			36
	85			18			44

Expenses
Interest expense	355			337			334
Pension and other postretirement remeasurement gains and losses	103			454			(219		)
Pension and other postretirement benefit expense	(122		)	(116		)	(224		)
Other operating expenses	49			50			50
	385			725			(59		)

(Loss) gain from operations before income tax benefit and equity in net income of subsidiaries	(300		)	(707		)	103

Income tax (benefit) expense	(75		)	(136		)	105
Loss before equity in net income of subsidiaries	(225		)	(571		)	(2		)

Equity in net income of subsidiaries	5,072			2,731			3,556
Net income	4,847			2,160			3,554

Preferred stock dividends	169			148			116

Net income applicable to common shareholders	4,678			2,012			3,438

Other comprehensive income (loss), after-tax
Changes in:
Unrealized net capital gains and losses	1,889			(754		)	319
Unrealized foreign currency translation adjustments	(10		)	(48		)	45
Unamortized pension and other postretirement prior service credit	(47		)	(59		)	(52		)
Other comprehensive income (loss), after-tax	1,832			(861		)	312
Comprehensive income	$	6,679		$	1,299		$	3,866

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

The Allstate Corporation and Subsidiaries

Schedule II (Continued) — Condensed Financial Information of Registrant Statement of Financial Position



($ in millions, except par value data)	December 31,
	2019			2018
Assets
Investments in subsidiaries	$	33,428		$	29,301
Fixed income securities, at fair value (amortized cost $458 and $355)	466			356
Short-term investments, at fair value (amortized cost $702 and $285)	702			285
Cash	2			—
Receivable from subsidiaries	448			426
Deferred income taxes	230			225
Other assets	86			92
Total assets	$	35,362		$	30,685

Liabilities
Long-term debt	$	6,631		$	6,451
Pension and other postretirement benefit obligations	1,081			1,050
Deferred compensation	327			281
Payable to subsidiaries	14			3
Notes due to subsidiaries	1,000			1,250
Dividends payable to shareholders	199			198
Other liabilities	112			140
Total liabilities	9,364			9,373

Shareholders’ equity
Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized, 92.5 thousand and 79.8 thousand shares issued and outstanding, $2,313 and $1,995 aggregate liquidation preference	2,248			1,930
Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 319 million and 332 million shares outstanding	9			9
Additional capital paid-in	3,463			3,310
Retained income	48,074			44,033
Deferred ESOP expense	—			(3		)
Treasury stock, at cost (581 million and 568 million shares)	(29,746		)	(28,085		)
Accumulated other comprehensive income:
Unrealized net capital gains and losses	1,887			(2		)
Unrealized foreign currency translation adjustments	(59		)	(49		)
Unamortized pension and other postretirement prior service credit	122			169
Total accumulated other comprehensive income	1,950			118
Total shareholders’ equity	25,998			21,312
Total liabilities and shareholders’ equity	$	35,362		$	30,685

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

The Allstate Corporation and Subsidiaries

Schedule II (Continued) — Condensed Financial Information of Registrant Statement of Cash Flows



($ in millions)	Years Ended December 31,
	2019			2018			2017
Cash flows from operating activities
Net income	$	4,847		$	2,160		$	3,554
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net income of subsidiaries	(5,072		)	(2,731		)	(3,556		)
Dividends received from subsidiaries	2,434			2,059			1,671
Realized capital gains and losses	(9		)	10			2
Pension and other postretirement remeasurement gains and losses	103			454			(219		)
Changes in:
Pension and other postretirement benefits	(122		)	(116		)	(224		)
Income taxes	13			(28		)	232
Operating assets and liabilities	111			160			56
Net cash provided by operating activities	2,305			1,968			1,516

Cash flows from investing activities
Proceeds from sales of investments	1,094			1,370			880
Proceeds from sales of investments to subsidiaries	—			390			—
Investment purchases	(892		)	(1,037		)	(748		)
Investment collections	65			108			13
Capital contribution or return of capital from subsidiaries	43			(975		)	42
Change in short-term investments, net	(417		)	(115		)	48
Net cash (used in) provided by investing activities	(107		)	(259		)	235

Cash flows from financing activities
Proceeds from borrowings from subsidiaries	1,000			1,250			300
Repayment of notes due to subsidiaries	(1,250		)	(250		)	(50		)
Proceeds from issuance of long-term debt	491			498			—
Redemption of preferred stock	(1,132		)	(385		)	—
Redemption and repayment of long-term debt	(317		)	(400		)	—
Proceeds from issuance of preferred stock	1,414			557			—
Dividends paid on common stock	(653		)	(614		)	(525		)
Dividends paid on preferred stock	(134		)	(134		)	(116		)
Treasury stock purchases	(1,735		)	(2,303		)	(1,495		)
Shares reissued under equity incentive plans, net	120			73			135
Other	—			(1		)	(2		)
Net cash used in financing activities	(2,196		)	(1,709		)	(1,753		)

Net increase (decrease) in cash	2			—			(2		)
Cash at beginning of year	—			—			2
Cash at end of year	$	2		$	—		$	—

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

The Allstate Corporation and Subsidiaries

Schedule II (Continued) — Condensed Financial Information of Registrant

Notes to Condensed Financial Information

1. General

Pursuant to rules and regulations of the SEC, the unconsolidated condensed financial statements of the Parent Company do not reflect all of the information and notes normally included with financial statements prepared in accordance with GAAP. Therefore, these condensed financial statements of the Registrant should be read in conjunction with the consolidated financial statements and notes thereto included in Item 8.

The long-term debt presented in Note 12 “Capital Structure” are direct obligations of the Registrant. A majority of the pension and other postretirement benefits plans presented in Note 17 “Benefit Plans” are direct obligations of the Registrant.

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

2. Notes due to subsidiaries

On June 19, 2019, the Registrant issued a $1.00 billion note, with a rate of 2.63% due on June 19, 2020 to Kennett Capital Inc. The proceeds of this issuance were used for cash management purposes.

On October 11, 2018 and December 18, 2018, the Registrant issued $250 million and $1.00 billion notes, with a rate of 2.49% and 3.03% due on April 11, 2019 and June 18, 2019, respectively, both to its wholly owned subsidiary Kennett Capital Inc. The proceeds of these issuances were used for cash management purposes. On April 11, 2019 and June 18, 2019, the Registrant repaid $250 million and $1.00 billion, respectively, to Kenneth Capital Inc.

3. Supplemental Disclosures of Cash Flow Information

The Registrant paid $312 million, $330 million and $331 million of interest on debt in 2019, 2018 and 2017, respectively.

Derivative Financial Instruments and Off-balance sheet Financial Instruments - Off balance sheet financial instruments (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Derivative Financial Instruments and Off-balance sheet Financial Instruments
Commitments to invest in limited partnership interests	$ 2,837	$ 3,028
Private placement commitments	68	47
Other loan commitments	$ 189	$ 233

Investments - Unrealized net capital gains and losses included in AOCI (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Fair value
Fixed income securities	$ 59,044,000,000	$ 57,170,000,000
Short-term investments	4,256,000,000	3,027,000,000
Derivative instruments	0	0
Gross unrealized Gains
Fixed income securities	2,847,000,000	993,000,000
Short-term investments	0	0
Derivative instruments	0	0
Gross unrealized Losses
Fixed income securities	(96,000,000)	(957,000,000)
Short-term investments	0	0
Derivative instruments	(3,000,000)	(3,000,000)
Unrealized net gains (losses)
Fixed income securities	2,751,000,000	36,000,000
Short-term investments	0	0
Derivative instruments	(3,000,000)	(3,000,000)
EMA limited partnerships	(4,000,000)	0
Unrealized net capital gains and losses, pre-tax	2,744,000,000	33,000,000
Amounts recognized for:
Insurance reserves	(126,000,000)	0
DAC and DSI	(224,000,000)	(33,000,000)
Amounts recognized	(350,000,000)	(33,000,000)
Deferred income taxes	(507,000,000)	(2,000,000)
Total unrealized net capital gains and losses	$ 1,887,000,000	$ (2,000,000)

Reinsurance and Indemnification - New Jersey Property-Liability Insurance Guaranty Association (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
New Jersey Unsatisfied Claim and Judgment Fund
Reinsurance Retention Policy [Line Items]
Minimum medical benefits portion of personal injury protection coverage for reimbursement to insurers for policies issued or renewed prior to January 1, 1991	$ 75,000
Minimum medical benefits portion of personal injury protection coverage for reimbursement to insurers for policies issued or renewed from January 1, 1991 to December 31, 2004	75,000
Maximum reimbursement to insurers for medical benefits paid under personal injury protection coverage.	250,000
Reinsurance, administration assessments paid	8,100,000
Reinsurance and indemnification recoverables, net	446,000,000	$ 461,000,000
Insurance fund balance	41,000,000
PLGIA
Reinsurance Retention Policy [Line Items]
Insurance fund balance	250,000,000
Florida Hurricane Catastrophe Fund
Reinsurance Retention Policy [Line Items]
Reinsurance and indemnification recoverables, net	52,000,000	104,000,000
Ceded losses incurred	$ 33,000,000	$ 143,000,000	$ 19,000,000

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

12 Months Ended

Dec. 31, 2019

Reserve for Property-Liability Insurance Claims and Claims Expense

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



Rollforward of reserve for property and casualty insurance claims and claims expense
($ in millions)	2019			2018			2017
Balance as of January 1	$	27,423		$	26,325		$	25,250
Less recoverables ⁽¹⁾	(7,155		)	(6,471		)	(6,184		)
Net balance as of January 1	20,268			19,854			19,066
SquareTrade acquisition as of January 3, 2017	—			—			17
Incurred claims and claims expense related to:
Current year	24,106			23,033			22,350
Prior years	(130		)	(255		)	(503		)
Total incurred	23,976			22,778			21,847
Claims and claims expense paid related to:
Current year	(15,160		)	(14,877		)	(14,112		)
Prior years	(8,284		)	(7,487		)	(6,964		)
Total paid	(23,444		)	(22,364		)	(21,076		)
Net balance as of December 31	20,800			20,268			19,854
Plus recoverables	6,912			7,155			6,471
Balance as of December 31	$	27,712		$	27,423		$	26,325

⁽¹⁾Recoverables comprises reinsurance and indemnification recoverables. See Note 10 for further details.



Reconciliation of total claims and claims expense incurred and paid by coverage	December 31, 2019
($ in millions)	Incurred			Paid
Allstate Protection
Auto insurance - liability coverage	$	9,142		$	(8,419	)
Auto insurance - physical damage coverage	5,576			(5,570		)
Homeowners insurance	4,625			(4,616		)
Total auto and homeowners insurance	19,343			(18,605		)
Other personal lines	1,024			(1,059		)
Commercial lines	648			(404		)
Service Businesses	297			(311		)
Discontinued Lines and Coverages	91			(121		)
Unallocated loss adjustment expenses (“ULAE”)	2,687			(2,585		)
Claims incurred and paid from before 2015	(97		)	(444		)
Other	(17		)	85
Total	$	23,976		$	(23,444	)

Incurred and paid claims and claims expense

The information about incurred and paid claims development for the 2015 to 2019 years, and the average annual percentage payout of incurred claims by age as of December 31, 2019, is presented as required supplementary information.

Auto insurance – liability coverage



($ in millions, except number of reported claims)	Incurred claims and allocated claim adjustment expenses, net of recoverables													IBNR reserves plus expected development on reported claims		Cumulative number of reported claims
	For the years ended December 31,										Prior year reserve reestimates			As of December 31, 2019
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2015		2016		2017		2018		2019
2015	$	8,763	$	8,733	$	8,677	$	8,617	$	8,578	$	(39	)	$	519	2,383,853
2016	—		9,030		8,833		8,732		8,683		(49		)	988		2,399,890
2017	—		—		8,457		8,389		8,305		(84		)	1,777		2,214,254
2018	—		—		—		8,727		8,708		(19		)	3,093		2,169,753
2019	—		—		—		—		9,333					5,838		2,108,919
							Total		$	43,607	$	(191	)
Reconciliation to total prior year reserve reestimates recognized by line
Prior year reserve reestimates for pre-2015 accident years											(56		)
Prior year reserve reestimates for ULAE											14
Other											(1		)
Total prior year reserve reestimates											$	(234	)

	Cumulative paid claims and allocated claims adjustment expenses, net of recoverables
	For the years ended December 31,
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2015		2016		2017		2018		2019
2015	$	3,524	$	5,837	$	6,883	$	7,565	$	8,059
2016	—		3,485		5,768		6,849		7,695
2017	—		—		3,149		5,330		6,528
2018	—		—		—		3,229		5,615
2019	—		—		—		—		3,495
							Total		$	31,392
All outstanding liabilities before 2015, net of recoverables									1,274
Liabilities for claims and claim adjustment expenses, net of recoverables									$	13,489

Homeowners insurance



($ in millions, except number of reported claims)	Incurred claims and allocated claim adjustment expenses, net of recoverables													IBNR reserves plus expected development on reported claims		Cumulative number of reported claims
	For the years ended December 31,										Prior year reserve reestimates			As of December 31, 2019
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2015		2016		2017		2018		2019
2015	$	3,558	$	3,611	$	3,553	$	3,537	$	3,520	$	(17	)	$	36	721,328
2016	—		3,959		3,993		3,955		3,951		(4		)	77		813,728
2017	—		—		4,475		4,617		4,612		(5		)	177		907,218
2018	—		—		—		4,747		4,851		104			340		807,012
2019	—		—		—		—		4,547					1,233		721,434
							Total		$	21,481	$	78
Reconciliation to total prior year reserve reestimates recognized by line
Prior year reserve reestimates for pre-2015 accident years											(36		)
Prior year reserve reestimates for ULAE											23
Other											—
Total prior year reserve reestimates											$	65

	Cumulative paid claims and allocated claims adjustment expenses, net of recoverables
	For the years ended December 31,
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2015		2016		2017		2018		2019
2015	$	2,586	$	3,296	$	3,399	$	3,458	$	3,484
2016	—		2,947		3,678		3,809		3,874
2017	—		—		3,227		4,246		4,435
2018	—		—		—		3,489		4,511
2019	—		—		—		—		3,314
							Total		$	19,618
All outstanding liabilities before 2015, net of recoverables									126
Liabilities for claims and claim adjustment expenses, net of recoverables									$	1,989

Auto insurance – physical damage coverage



($ in millions, except number of reported claims)	Incurred claims and allocated claim adjustment expenses, net of recoverables													IBNR reserves plus expected development on reported claims			Cumulative number of reported claims
	For the years ended December 31,										Prior year reserve reestimates			As of December 31, 2019
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2015		2016		2017		2018		2019
2015	$	4,653	$	4,681	$	4,669	$	4,660	$	4,656	$	(4	)	$	2		4,390,288
2016	—		5,125		5,052		5,025		5,020		(5		)	5			4,431,735
2017	—		—		5,119		5,037		5,025		(12		)	(2		)	4,236,640
2018	—		—		—		5,216		5,154		(62		)	17			4,306,335
2019	—		—		—		—		5,659					244			4,312,306
							Total		$	25,514	$	(83	)
Reconciliation to total prior year reserve reestimates recognized by line
Prior year reserve reestimates for pre-2015 accident years											(4		)
Prior year reserve reestimates for ULAE											(2		)
Other											—
Total prior year reserve reestimates											$	(89	)

	Cumulative paid claims and allocated claims adjustment expenses, net of recoverables
	For the years ended December 31,
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2015		2016		2017		2018		2019
2015	$	4,507	$	4,672	$	4,658	$	4,655	$	4,654
2016	—		4,887		5,031		5,019		5,016
2017	—		—		4,845		5,036		5,027
2018	—		—		—		4,968		5,137
2019	—		—		—		—		5,414
							Total		$	25,248
All outstanding liabilities before 2015, net of recoverables									7
Liabilities for claims and claim adjustment expenses, net of recoverables									$	273

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



Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2019
	1 year		2 years		3 years		4 years		5 years
Homeowners insurance	74.5	%	18.9	%	3.1	%	1.4	%	0.7	%



Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2019
	1 year		2 years		3 years		4 years		5 years
Auto insurance – liability coverage	40.0	%	27.2	%	12.9	%	8.2	%	4.9	%



Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2019
	1 year		2 years		3 years		4 years		5 years
Auto insurance – physical damage coverage	97.0	%	3.0	%	(0.2	)%	—	%	—	%

Reconciliation of the net incurred claims and claims expense development



Reconciliation of the net incurred and paid claims development tables above to the reserve for property and casualty insurance claims and claims expense
($ in millions)	As of December 31, 2019
Net outstanding liabilities
Allstate Protection
Auto insurance - liability coverage	$	13,489
Auto insurance - physical damage coverage	273
Homeowners insurance	1,989
Other personal lines	1,326
Commercial lines	1,010
Service Businesses	36
Discontinued Lines and Coverages ⁽¹⁾	1,286
ULAE	1,391
Net reserve for property and casualty insurance claims and claims expense	20,800

Recoverables
Allstate Protection
Auto insurance - liability coverage	5,891
Auto insurance - physical damage coverage	3
Homeowners insurance	214
Other personal lines	160
Commercial lines	130
Service Businesses	13
Discontinued Lines and Coverages	452
ULAE	49
Total recoverables	6,912
Gross reserve for property and casualty insurance claims and claims expense	$	27,712

⁽¹⁾

Discontinued Lines and Coverages includes business in run-off with most of the claims related to accident years more than 30 years ago. IBNR reserves represent $660 million of the total reserves as of December 31, 2019.

Equity Incentive Plans - Option grant assumptions (Details) - Stock options	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assumptions used to determine fair value of options granted
Weighted average expected term	5 years 9 months 18 days	5 years 8 months 12 days	6 years 1 month 6 days
Expected volatility, low end of the range (as a percent)	15.60%	15.60%	15.70%
Expected volatility, high end of the range (as a percent)	28.90%	30.70%	32.70%
Weighted average volatility (as a percent)	18.40%	19.80%	21.00%
Expected dividends, minimum range (as a percent)	1.90%	1.50%	1.40%
Expected dividends, maximum range (as a percent)	2.20%	2.20%	1.90%
Weighted average expected dividends (as a percent)	2.20%	2.00%	1.90%
Risk-free rate, low end of the range (as a percent)	1.30%	1.30%	0.50%
Risk-free rate, high end of the range (as a percent)	2.70%	3.20%	2.50%

Investments - Realized capital gains and losses by asset type (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Realized capital gains and losses by asset type
Realized capital gains and losses	$ 1,885	$ (877)	$ 445
Fixed income securities
Realized capital gains and losses by asset type
Realized capital gains and losses	461	(237)	94
Equity securities
Realized capital gains and losses by asset type
Realized capital gains and losses	1,210	(594)	255
Mortgage loans
Realized capital gains and losses by asset type
Realized capital gains and losses	0	2	1
Limited partnership interests
Realized capital gains and losses by asset type
Realized capital gains and losses	200	(101)	132
Derivatives
Realized capital gains and losses by asset type
Realized capital gains and losses	(15)	46	(46)
Other
Realized capital gains and losses by asset type
Realized capital gains and losses	$ 29	$ 7	$ 9

Statutory Financial Information and Dividend Limitations - Allstates domestic insurance subsidiaries (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Amount per statutory accounting practices
Net income (loss)	$ 4,411	$ 3,404	$ 3,377
Capital and surplus	20,400	18,147
Property-Liability
Amount per statutory accounting practices
Net income (loss)	3,989	2,939	3,050
Capital and surplus	16,192	14,328
Allstate Annuities
Amount per statutory accounting practices
Net income (loss)	422	465	$ 327
Capital and surplus	$ 4,208	$ 3,819

Fair Value of Assets and Liabilities - Quantitative information about Level 3 instruments (Details) - Equity-indexed and forward starting options in life and annuity product contracts - Significant unobservable inputs (Level 3) $ in Millions	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Quantitative information about the significant unobservable inputs
Fair value	$ (430)	$ (185)
Projected option cost \| Weighted Average
Quantitative information about the significant unobservable inputs
Weighted average	0.0267	0.0174
Projected option cost \| Minimum
Quantitative information about the significant unobservable inputs
Weighted average	0.010	0.010
Projected option cost \| Maximum
Quantitative information about the significant unobservable inputs
Weighted average	0.042	0.022

Summary of Significant Accounting Policies - Consolidated Statement of Operations (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2019	Jan. 01, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Property and casualty insurance claims and claims expense									$ 23,976,000,000	$ 22,778,000,000	$ 21,847,000,000
Operating costs and expenses									5,690,000,000	5,594,000,000	5,196,000,000
Pension and other postretirement remeasurement gains and losses									114,000,000	468,000,000	(217,000,000)
Restructuring and related charges									41,000,000	67,000,000	96,000,000
Total costs and expenses									38,592,000,000	37,193,000,000	34,878,000,000
Total costs and expenses									6,089,000,000	2,628,000,000	4,549,000,000
Income tax expense									1,242,000,000	468,000,000	995,000,000
Net income									4,847,000,000	2,160,000,000	3,554,000,000
Net Income (Loss) Available to Common Stockholders, Basic	$ 1,707,000,000	$ 889,000,000	$ 821,000,000	$ 1,261,000,000	$ (585,000,000)	$ 942,000,000	$ 678,000,000	$ 977,000,000	$ 4,678,000,000	$ 2,012,000,000	$ 3,438,000,000
Net income applicable to common shareholders earnings per common share - Basic (in dollars per share)	$ 5.32	$ 2.71	$ 2.47	$ 3.79	$ (1.71)	$ 2.72	$ 1.94	$ 2.76	$ 14.25	$ 5.78	$ 9.50
Net income applicable to common shareholders earnings per common share - Diluted (in dollars per share)	$ 5.23	$ 2.67	$ 2.44	$ 3.74	$ (1.71)	$ 2.68	$ 1.91	$ 2.71	$ 14.03	$ 5.70	$ 9.35
Impact of merger	$ 25,998,000,000				$ 21,312,000,000				$ 25,998,000,000	$ 21,312,000,000	$ 22,551,000,000
Change in accounting principle
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net Income (Loss) Available to Common Stockholders, Basic	$ 240,000,000	$ (140,000,000)	$ (69,000,000)	$ 5,000,000	$ (273,000,000)	$ 109,000,000	$ 41,000,000	$ 31,000,000
Net income applicable to common shareholders earnings per common share - Basic (in dollars per share)	$ 0.75	$ (0.43)	$ (0.21)	$ 0.01	$ (0.80)	$ 0.31	$ 0.12	$ 0.09
Net income applicable to common shareholders earnings per common share - Diluted (in dollars per share)	$ 0.73	$ (0.42)	$ (0.20)	$ 0.02	$ (0.80)	$ 0.31	$ 0.11	$ 0.08
Previously reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Property and casualty insurance claims and claims expense									24,074,000,000	22,839,000,000	21,929,000,000
Operating costs and expenses									5,752,000,000	5,869,000,000	5,442,000,000
Pension and other postretirement remeasurement gains and losses									0	0	0
Restructuring and related charges									41,000,000	83,000,000	109,000,000
Total costs and expenses									38,638,000,000	37,077,000,000	35,436,000,000
Total costs and expenses									6,043,000,000	2,744,000,000	3,991,000,000
Income tax expense									1,232,000,000	492,000,000	802,000,000
Net income									4,811,000,000	2,252,000,000	3,189,000,000
Net Income (Loss) Available to Common Stockholders, Basic									$ 4,642,000,000	$ 2,104,000,000	$ 3,073,000,000
Net income applicable to common shareholders earnings per common share - Basic (in dollars per share)									$ 14.14	$ 6.05	$ 8.49
Net income applicable to common shareholders earnings per common share - Diluted (in dollars per share)									$ 13.92	$ 5.96	$ 8.36
Impact of merger	$ 26,156,000,000				$ 21,312,000,000				$ 26,156,000,000	$ 21,312,000,000
Change in accounting principle \| Change in accounting principle
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Property and casualty insurance claims and claims expense									(98,000,000)	(61,000,000)	$ (82,000,000)
Operating costs and expenses									(62,000,000)	(275,000,000)	(246,000,000)
Pension and other postretirement remeasurement gains and losses									114,000,000	468,000,000	(217,000,000)
Restructuring and related charges									0	(16,000,000)	(13,000,000)
Total costs and expenses									(46,000,000)	116,000,000	(558,000,000)
Total costs and expenses									46,000,000	(116,000,000)	558,000,000
Income tax expense									10,000,000	(24,000,000)	193,000,000
Net income									36,000,000	(92,000,000)	365,000,000
Net Income (Loss) Available to Common Stockholders, Basic									$ 36,000,000	$ (92,000,000)	$ 365,000,000
Net income applicable to common shareholders earnings per common share - Basic (in dollars per share)									$ 0.11	$ (0.27)	$ 1.01
Net income applicable to common shareholders earnings per common share - Diluted (in dollars per share)									$ 0.11	$ (0.26)	$ 0.99
Impact of merger	$ (158,000,000)				$ 0				$ (158,000,000)	$ 0		$ (41,000,000)	$ 0

Fair Value of Assets and Liabilities - Change in level 3 assets and liabilities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Gains (losses) included in net income for Level 3 assets and liabilities:
Fair value assets measured on recurring basis, change in unrealized gain (loss) included in earnings	$ 6	$ 36	$ 10
Gains (losses) for Level 3 liabilities still held at the balance sheet date, included in earnings	(61)	58	0
Gains (losses) for Level 3 assets and liabilities still held at the balance sheet date, included in earnings	(55)	94	10
Net investment income
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date	(2)	0	19
Realized capital gains (losses)
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date	8	36	(8)
Life and annuity contract benefits
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date	7	(5)	9
Interest credited to contractholder funds
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date	(68)	63	(10)
Contractholder funds: Derivatives embedded in life and annuity contracts
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 liabilities still held at the balance sheet date, included in earnings	(61)	58	0
Municipal
Gains (losses) included in net income for Level 3 assets and liabilities:
Fair value assets measured on recurring basis, change in unrealized gain (loss) included in earnings	1	0	(3)
Corporate
Gains (losses) included in net income for Level 3 assets and liabilities:
Fair value assets measured on recurring basis, change in unrealized gain (loss) included in earnings	0	0	1
Fixed income securities
Gains (losses) included in net income for Level 3 assets and liabilities:
Fair value assets measured on recurring basis, change in unrealized gain (loss) included in earnings	1	0	(2)
Equity securities
Gains (losses) included in net income for Level 3 assets and liabilities:
Fair value assets measured on recurring basis, change in unrealized gain (loss) included in earnings	6	36	13
Free-standing derivatives, net
Gains (losses) included in net income for Level 3 assets and liabilities:
Fair value assets measured on recurring basis, change in unrealized gain (loss) included in earnings	(1)	0	0
Other assets
Gains (losses) included in net income for Level 3 assets and liabilities:
Fair value assets measured on recurring basis, change in unrealized gain (loss) included in earnings	$ 0	$ 0	$ (1)

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Basis of presentation

The accompanying consolidated financial statements include the accounts of The Allstate Corporation (the “Corporation”) and its wholly owned subsidiaries, primarily Allstate Insurance Company (“AIC”), a property and casualty insurance company with various property and casualty and life and investment subsidiaries, including Allstate Life Insurance Company (“ALIC”) (collectively referred to as the “Company” or “Allstate”). These consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). All significant intercompany accounts and transactions have been eliminated.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Risks and uncertainties

Allstate has exposure to catastrophic events, including wind and hail, wildfires, tornadoes, hurricanes, tropical storms, earthquakes, volcanic eruptions, terrorism and industrial accidents.

Catastrophes, an inherent risk of the property and casualty insurance business, have contributed, and will continue to contribute, to material year-to-year fluctuations in the Company’s results of operations and financial position (see Note 8). The nature and level of catastrophic loss experienced in any period cannot be predicted and could be material to results of operations and financial position.

The Company considers the following categories and locations to be the greatest areas of potential catastrophe losses:


•	Wildfires — California, Colorado, Arizona and Texas


•	Hurricanes — Major metropolitan centers in counties along the eastern and gulf coasts of the United States


•	Wind/Hail, Rain and Tornado — Texas, Illinois, Colorado and Georgia

•

Earthquakes and fires following earthquakes —Major metropolitan areas near fault lines in the states of California, Oregon, Washington, South Carolina, Missouri, Kentucky and Tennessee

Investments

Derivative and embedded derivative financial instruments

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

for fixed income securities, the carrying value for mortgage loans or the carrying value of a designated hedged liability is adjusted for the change in fair value of the hedged risk.

Securities loaned

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

Property and casualty insurance premiums include premiums from personal lines policies, protection plans, other contracts (primarily finance and insurance products) and roadside assistance.

Personal lines insurance premiums are deferred and earned on a pro-rata basis over the terms of the policies, typically periods of six or twelve months.

term of the contract as performance obligations are fulfilled.

Deferred policy acquisition and sales inducement costs

Reinsurance and Indemnification

Reinsurance and indemnification recoverables are recognized as an offset to gross reserves for property and casualty insurance claims and claims expense.

Goodwill



Goodwill by reporting unit
	As of December 31,
($ in millions)	2019		2018
Allstate Protection	$	810	$	810
Service Businesses	1,464		1,449
Allstate Life	175		175
Allstate Benefits	96		96
Total	$	2,545	$	2,530

Intangible assets, finite-lived

Intangible assets

Intangible assets, indefinite-lived

Trade names and licenses are considered to have an indefinite useful life and are reviewed for impairment at least annually or more frequent if circumstances arise that indicate an impairment may have occurred. An impairment is recognized if the carrying amount of the asset exceeds its estimated fair value.

Property and equipment

Income taxes

Reserves for property-liability insurance claims and claims expense and life-contingent contract benefits

Reserve for property and casualty insurance claims and claims expense

Reserve for life-contingent contract benefits

Contractholder funds

Separate accounts

Legal contingencies

The Company reviews its lawsuits, regulatory inquiries, and other legal proceedings on an ongoing basis. The Company establishes accruals for such

Equity incentive plans

Off-balance sheet financial instruments

Consolidation of variable interest entities ("VIEs")

Consolidation of variable interest entities (“VIEs”)

Foreign currency translation

Earnings per common share

For the Company, dilutive potential common shares consist of outstanding stock options and unvested non-participating restricted stock units and contingently issuable performance stock awards.

Accounting standards

Adopted accounting standards

Pending accounting standards

Measurement of Credit Losses on Financial Instruments

Changes to the Disclosure Requirements for Defined Benefit Plans

Accounting for Long-Duration Insurance Contracts

In August 2018, the FASB issued guidance revising the accounting for certain long-duration insurance

Change in accounting principle

Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Components of the plans' funded status reflected in the Consolidated Statements of Financial Position



Change in projected benefit obligation, plan assets and funded status
	As of December 31,
	Pension benefits						Postretirement benefits
($ in millions)	2019			2018			2019			2018
Change in projected benefit obligation
Benefit obligation, beginning of year	$	6,224		$	6,815		$	375		$	386
Service cost	117			110			8			7
Interest cost	240			255			14			15
Participant contributions	—			—			15			13
Actuarial losses (gains)	927			(255		)	19			(4		)
Benefits paid	(356		)	(646		)	(39		)	(35		)
Translation adjustment and other	(13		)	(55		)	5			(7		)
Benefit obligation, end of year	$	7,139		$	6,224		$	397		$	375

Change in plan assets
Fair value of plan assets, beginning of year	$	5,299		$	6,284
Actual return on plan assets	1,235			(300		)
Employer contribution	27			16
Benefits paid	(356		)	(646		)
Translation adjustment and other	(13		)	(55		)
Fair value of plan assets, end of year	$	6,192		$	5,299

Funded status ⁽¹⁾	$	(947	)	$	(925	)	$	(397	)	$	(375	)

Amounts recognized in AOCI
Unamortized pension and other postretirement prior service credit	$	(142	)	$	(198	)	$	(13	)	$	(16	)

⁽¹⁾

The funded status is recorded within other liabilities and accrued expenses on the Consolidated Statements of Financial Position.

Change during the period in items not yet recognized as a component of net periodic cost

The funded status is recorded within other liabilities and accrued expenses on the Consolidated Statements of Financial Position.



Changes in items not yet recognized as a component of net cost for pension and other postretirement plans
($ in millions)	Pension benefits			Postretirement benefits
Items not yet recognized as a component of net cost – December 31, 2018	$	(198	)	$	(16	)
Prior service credit amortized to net cost	56			3
Items not yet recognized as a component of net cost – December 31, 2019	$	(142	)	$	(13	)

Components of net periodic cost



Components of net cost (benefit) for pension and other postretirement plans
	For the years ended December 31,
	Pension benefits									Postretirement benefits									Total Pension and Postretirement Benefits
($ in millions)	2019			2018			2017			2019			2018			2017			2019			2018			2017
Service cost	$	117		$	110		$	111		$	8		$	7		$	8		$	125		$	117		$	119
Interest cost	240			255			254			14			15			15			254			270			269
Expected return on plan assets	(403		)	(427		)	(419		)	—			—			—			(403		)	(427		)	(419		)
Amortization of prior service credit	(56		)	(56		)	(56		)	(3		)	(21		)	(25		)	(59		)	(77		)	(81		)
Costs and expenses	(102		)	(118		)	(110		)	19			1			(2		)	(83		)	(117		)	(112		)
Remeasurement of projected benefit obligation	927			(255		)	406			19			(4		)	8			946			(259		)	414
Remeasurement of plan assets	(832		)	727			(631		)	—			—			—			(832		)	727			(631		)
Remeasurement gains and losses	95			472			(225		)	19			(4		)	8			114			468			(217		)
Total net (benefit) cost	$	(7	)	$	354		$	(335	)	$	38		$	(3	)	$	6		$	31		$	351		$	(329	)

Weighted average assumptions used to determine for pension plans and postretirement benefits plans the net benefit cost and benefit obligation



Weighted average assumptions used to determine net pension cost and net postretirement benefit cost
	For the years ended December 31,
	Pension benefits						Postretirement benefits
($ in millions)	2019		2018		2017		2019		2018		2017
Discount rate	3.70	%	4.06	%	3.96	%	3.61	%	3.95	%	3.91	%
Expected long-term rate of return on plan assets	7.34		7.33		7.32		n/a		n/a		n/a



Weighted average assumptions used to determine benefit obligations
	For the years ended December 31,
	Pension benefits				Postretirement benefits
	2019		2018		2019		2018
Discount rate	3.31	%	4.31	%	3.27	%	4.22	%

Pension plans' weighted average target asset allocation and the actual percentage of plan assets



Weighted average target asset allocation and actual percentage of plan assets by asset category
	As of December 31, 2019
	Target asset allocation ⁽¹⁾	Actual percentage of plan assets
Pension plan’s asset category	2019	2019		2018
Equity securities ⁽²⁾	37 - 55%	50	%	47	%
Fixed income securities	37 - 48%	38		41
Limited partnership interests	1 - 15%	10		9
Short-term investments and other	—	2		3
Total without securities lending ⁽³⁾		100	%	100	%


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


⁽²⁾	The actual percentage of plan assets for equity securities includes 1% of private equity investments in both 2019 and 2018 that are subject to the limited partnership interests target allocation and none and 4% of fixed income mutual funds in 2019 and 2018, respectively, that are subject to the fixed income securities target allocation.

⁽³⁾

Securities lending collateral reinvestment of $258 million and $208 million is excluded from the table above in 2019 and 2018, respectively.

Fair values of pension plan assets



Fair values of pension plan assets as of December 31, 2019
($ in millions)	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Balance as of December 31, 2019
Equity securities	$	216		$	45		$	—		$	261
Fixed income securities:
U.S. government and agencies	237			1,096			—			1,333
Corporate	—			1,060			—			1,060
Short-term investments	128			252			—			380
Free-standing derivatives:
Assets	—			5			—			5
Liabilities	(2		)	(17		)	—			(19		)
Total plan assets at fair value	$	579		$	2,441		$	—		3,020
% of total plan assets at fair value	19.2		%	80.8		%	—		%	100.0		%

Investments measured using the net asset value practical expedient										3,418
Securities lending obligation ⁽¹⁾										(272		)
Derivatives counterparty and cash collateral netting										9
Other net plan assets ⁽²⁾										17
Total reported plan assets										$	6,192

⁽¹⁾


⁽²⁾	Other net plan assets represent cash and cash equivalents, interest and dividends receivable and net receivables related to settlements of investment transactions, such as purchases and sales.



Fair values of pension plan assets as of December 31, 2018
($ in millions)	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Balance as of December 31, 2018
Equity securities	$	51		$	265		$	—		$	316
Fixed income securities:
U.S. government and agencies	172			509			—			681
Corporate	—			1,479			5			1,484
Short-term investments	122			198			—			320
Free-standing derivatives:
Assets	—			19			—			19
Liabilities	—			(11		)	—			(11		)
Total plan assets at fair value	$	345		$	2,459		$	5		2,809
% of total plan assets at fair value	12.3		%	87.5		%	0.2		%	100.0		%

Investments measured using the net asset value practical expedient										2,687
Securities lending obligation										(222		)
Derivatives counterparty and cash collateral netting										(6		)
Other net plan assets										31
Total reported plan assets										$	5,299

Rollforward of Level 3 plan assets



Rollforward of Level 3 plan assets during December 31, 2019
			Actual return on plan assets:
($ in millions)	Balance as of December 31, 2018		Relating to assets sold during the period		Relating to assets still held at the reporting date		Purchases, sales and settlements, net			Net transfers in and/or (out) of Level 3		Balance as of December 31, 2019
Equity securities	$	—	$	—	$	—	$	—		$	—	$	—
Fixed income securities:
Corporate	5		—		—		(5		)	—		—
Total Level 3 plan assets	$	5	$	—	$	—	$	(5	)	$	—	$	—



Rollforward of Level 3 plan assets during December 31, 2018
			Actual return on plan assets:
($ in millions)	Balance as of December 31, 2017		Relating to assets sold during the period		Relating to assets still held at the reporting date		Purchases, sales and settlements, net			Net transfers in and/or (out) of Level 3			Balance as of December 31, 2018
Equity securities	$	29	$	—	$	3	$	—		$	(32	)	$	—
Fixed income securities:
Corporate	10		—		—		(5		)	—			5
Total Level 3 plan assets	$	39	$	—	$	3	$	(5	)	$	(32	)	$	5



Rollforward of Level 3 plan assets during December 31, 2017
			Actual return on plan assets:
($ in millions)	Balance as of December 31, 2016		Relating to assets sold during the period		Relating to assets still held at the reporting date		Purchases, sales and settlements, net		Net transfers in and/or (out) of Level 3		Balance as of December 31, 2017
Equity securities	$	—	$	—	$	—	$	29	$	—	$	29
Fixed income securities:
Corporate	10		—		—		—		—		10
Total Level 3 plan assets	$	10	$	—	$	—	$	29	$	—	$	39

Estimated future benefit payments expected to be paid



Estimated future benefit payments expected to be paid in the next 10 years
	As of December 31, 2019
($ in millions)	Pension benefits		Postretirement benefits
2020	$	600	$	23
2021	629		24
2022	636		26
2023	634		27
2024	626		27
2025-2029	2,401		136
Total benefit payments	$	5,526	$	263

Schedule of ESOP benefit



ESOP benefit
	For the years December 31,
($ in millions)	2019			2018			2017
Interest expense recognized by ESOP	$	—		$	—		$	—
Less: dividends accrued on ESOP shares	(1		)	(1		)	(1		)
Cost of shares allocated	3			—			3
Compensation expense	2			(1		)	2
Reduction of defined contribution due to ESOP	43			1			38
ESOP benefit	$	(41	)	$	(2	)	$	(36	)

Benefit Plans - Weighted average target allocation and actual percentage (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Private equity funds
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Actual percentage of plan assets	1.00%	1.00%
Mutual funds
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Target asset allocation	0.00%	4.00%
Pension benefits
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Actual percentage of plan assets	100.00%	100.00%
Fair value of plan assets	$ 6,192	$ 5,299	$ 6,284
Pension benefits \| Equity securities
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Actual percentage of plan assets	50.00%	47.00%
Pension benefits \| Equity securities \| Minimum
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Target asset allocation	37.00%
Pension benefits \| Equity securities \| Maximum
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Target asset allocation	55.00%
Pension benefits \| Fixed income securities
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Actual percentage of plan assets	38.00%	41.00%
Pension benefits \| Fixed income securities \| Minimum
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Target asset allocation	37.00%
Pension benefits \| Fixed income securities \| Maximum
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Target asset allocation	48.00%
Pension benefits \| Securities pledged as collateral
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Fair value of plan assets	$ 258	$ 208
Pension benefits \| Limited partnership interests
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Actual percentage of plan assets	10.00%	9.00%
Pension benefits \| Limited partnership interests \| Minimum
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Target asset allocation	1.00%
Pension benefits \| Limited partnership interests \| Maximum
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Target asset allocation	15.00%
Pension benefits \| Short-term investments and other
Pension plans' weighted average target percentage of plan assets and the actual percentage of plan assets
Target asset allocation	0.00%
Actual percentage of plan assets	2.00%	3.00%

Summary of Significant Accounting Policies - Leases (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Lessee, Lease, Description [Line Items]
Renewal term	20 years
Lease, option to terminate	60 days
Lease liability	$ 586
Right of use asset	483
Lease, cost	171
Variable lease, cost	$ 30
Weighted average remaining lease term (years)	6 years
Weighted average discount rate	3.15%
2020	$ 133
2021	121
2022	102
2023	84
2024	67
Thereafter	137
Total lease payments	644
Less: interest	(58)
Present value of lease liabilities	$ 586
Minimum
Lessee, Lease, Description [Line Items]
Lease, term of contract	1 year
Maximum
Lessee, Lease, Description [Line Items]
Lease, term of contract	10 years

Company Restructuring - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring and related charges	$ 41	$ 67	$ 96
Employee costs
Restructuring Cost and Reserve [Line Items]
Cumulative amount incurred to date for active programs	112
Exit costs
Restructuring Cost and Reserve [Line Items]
Cumulative amount incurred to date for active programs	$ 12

Reserve for Property-Liability Insurance Claims and Claims Expense - Reconciliation of the net incurred and paid claims development (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Claims Development [Line Items]
Net outstanding liabilities	$ 20,800
ULAE	1,391
Recoverables	6,912
ULAE	49
Gross reserve for property and casualty insurance claims and claims expense	27,712	$ 27,423	$ 26,325	$ 25,250
Reserves for asbestos claims	810	866
Reinsurance recoverables for asbestos claims	(362)	(400)
Reserves for environmental claims	179	170
Reinsurance recoverables for environmental claims	40	$ 39
Discontinued Lines and Coverages
Claims Development [Line Items]
Net outstanding liabilities	1,286
Recoverables	452
Gross reserve for property and casualty insurance claims and claims expense	660
Auto insurance - liability coverage
Claims Development [Line Items]
Net outstanding liabilities	13,489
Recoverables	5,891
Auto insurance - physical damage coverage
Claims Development [Line Items]
Net outstanding liabilities	273
Recoverables	3
Homeowners insurance
Claims Development [Line Items]
Net outstanding liabilities	1,989
Recoverables	214
Other personal lines
Claims Development [Line Items]
Net outstanding liabilities	1,326
Recoverables	160
Commercial lines
Claims Development [Line Items]
Net outstanding liabilities	1,010
Recoverables	130
Service Businesses
Claims Development [Line Items]
Net outstanding liabilities	36
Recoverables	$ 13

Reinsurance and Indemnification - Other Reinsurance Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reinsurance Retention Policy [Line Items]
Reinsurance recoverables	$ 70
Life insurance in force ceded to unaffiliated reinsurers	74,021	$ 81,186	$ 86,642
Allstate Annuities
Reinsurance Retention Policy [Line Items]
Gross life insurance in force	449,200
Life insurance in force ceded to unaffiliated reinsurers	74,020
Life and annuity contract benefits
Reinsurance Retention Policy [Line Items]
Ceded losses incurred	165	240	179
Interest credited to contractholder funds
Reinsurance Retention Policy [Line Items]
Ceded losses incurred	20	24	25
Citigroup Subsidiaries and Scottish Re \| Operating costs and expenses \| Allstate Annuities
Reinsurance Retention Policy [Line Items]
Reinsurance recoverables	112	118
Prudential \| Allstate Annuities
Reinsurance Retention Policy [Line Items]
Reinsurance recoverables	1,290	1,360
Prudential \| Life and annuity premiums and contract charges \| Allstate Annuities
Reinsurance Retention Policy [Line Items]
Ceded losses incurred	65	72	76
Prudential \| Life and annuity contract benefits \| Allstate Annuities
Reinsurance Retention Policy [Line Items]
Ceded losses incurred	4	87	7
Prudential \| Interest credited to contractholder funds \| Allstate Annuities
Reinsurance Retention Policy [Line Items]
Ceded losses incurred	19	20	20
Prudential \| Operating costs and expenses \| Allstate Annuities
Reinsurance Retention Policy [Line Items]
Ceded losses incurred	12	$ 14	$ 15
Lincoln Benefit Life Company
Reinsurance Retention Policy [Line Items]
Investments held by trust	$ 6,250
Reinsurer Concentration Risk \| A-
Reinsurance Retention Policy [Line Items]
Concentration risk, percentage	93.00%
Reinsurer Concentration Risk \| A- \| Allstate Annuities
Reinsurance Retention Policy [Line Items]
Concentration risk, percentage		93.00%

General

12 Months Ended

Dec. 31, 2019

General

General



Note 1	General

Basis of presentation

On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“Tax Legislation”) became effective, permanently reducing the U.S. corporate income tax rate from 35% to 21% beginning January 1, 2018. As a result, the corporate tax rate is not comparable between periods.

Nature of operations

Allstate is engaged, principally in the United States, in the property and casualty insurance and life insurance businesses. Allstate is one of the country’s largest personal property and casualty insurers and is organized into seven reportable segments: Allstate Protection, Discontinued Lines and Coverages, Service Businesses, Allstate Life, Allstate Benefits, Allstate Annuities, and Corporate and Other.

Allstate’s primary business is the sale of private passenger auto and homeowners insurance. The Company also offers several other personal property and casualty insurance products, select commercial property and casualty coverages, consumer product protection plans, device and mobile data collection services and analytic solutions using automotive telematics information, roadside assistance, finance and insurance products, life insurance, voluntary accident and health insurance and identity protection. Allstate primarily distributes its products through exclusive agencies, financial specialists, independent agencies and brokers, major retailers, contact centers and the internet.

Risks and uncertainties

Allstate has exposure to catastrophic events, including wind and hail, wildfires, tornadoes, hurricanes, tropical storms, earthquakes, volcanic eruptions, terrorism and industrial accidents.

The Company considers the following categories and locations to be the greatest areas of potential catastrophe losses:


•	Wildfires — California, Colorado, Arizona and Texas


•	Hurricanes — Major metropolitan centers in counties along the eastern and gulf coasts of the United States


•	Wind/Hail, Rain and Tornado — Texas, Illinois, Colorado and Georgia

•

Earthquakes and fires following earthquakes —Major metropolitan areas near fault lines in the states of California, Oregon, Washington, South Carolina, Missouri, Kentucky and Tennessee

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Schedule of Goodwill by reporting unit

The Company’s goodwill reporting units are equivalent to its reportable segments, Allstate Protection, Service Businesses, Allstate Life and Allstate Benefits to which goodwill has been assigned.



Goodwill by reporting unit
	As of December 31,
($ in millions)	2019		2018
Allstate Protection	$	810	$	810
Service Businesses	1,464		1,449
Allstate Life	175		175
Allstate Benefits	96		96
Total	$	2,545	$	2,530

Future amortization expense



Amortization expense of intangible assets for the next five years and thereafter
($ in millions)
2020	$	109
2021	91
2022	74
2023	60
2024	45
Thereafter	64
Total amortization	$	443

Schedule of indefinite-lived intangible assets



Intangible assets by type
	As of December 31,
($ in millions)	2019		2018
Customers relationships	$	419	$	530
Trade names and licenses	38		143
Technology and other	24		40
Total	$	481	$	713

Schedule of finite-lived intangible assets



Intangible assets by type
	As of December 31,
($ in millions)	2019		2018
Customers relationships	$	419	$	530
Trade names and licenses	38		143
Technology and other	24		40
Total	$	481	$	713

Computation of basic and diluted earnings per common share



Computation of basic and diluted earnings per common share
	For the years ended December 31,
($ in millions, except per share data)	2019		2018		2017
Numerator:
Net income	$	4,847	$	2,160	$	3,554
Less: Preferred stock dividends	169		148		116
Net income applicable to common shareholders⁽¹⁾	$	4,678	$	2,012	$	3,438

Denominator:
Weighted average common shares outstanding	328.2		347.8		362.0
Effect of dilutive potential common shares:
Stock options	3.2		3.6		4.3
Restricted stock units (non-participating) and performance stock awards	2.1		1.8		1.5
Weighted average common and dilutive potential common shares outstanding	333.5		353.2		367.8

Earnings per common share – Basic	$	14.25	$	5.78	$	9.50
Earnings per common share – Diluted	$	14.03	$	5.70	$	9.35

Anti-dilutive options excluded from diluted earnings per common share	3.7		2.0		1.5

Schedule of changes in accounting principles

The impacts of the adjustments on the financial statements are summarized in the following tables.



Consolidated Statements of Operations
	Previous accounting principle		Impact of change ⁽¹⁾			As reported
($ in millions, except per share data)	Year Ended December 31, 2019
Property and casualty insurance claims and claims expense	$	24,074	$	(98	)	$	23,976
Operating costs and expenses	5,752		(62		)	5,690
Pension and other postretirement remeasurement gains and losses	—		114			114
Restructuring and related charges	41		—			41
Total costs and expenses	38,638		(46		)	38,592
Income from operations before income tax expense	6,043		46			6,089
Income tax expense	1,232		10			1,242
Net income	4,811		36			4,847
Net income applicable to common shareholders	$	4,642	$	36		$	4,678

Earnings per common share:
Net income applicable to common shareholders per common share - Basic	$	14.14	$	0.11		$	14.25
Net income applicable to common shareholders per common share - Diluted	$	13.92	$	0.11		$	14.03



Consolidated Statements of Operations
	Previous accounting principle		Change in accounting principle			As adjusted
	Year Ended December 31, 2018
Property and casualty insurance claims and claims expense	$	22,839	$	(61	)	$	22,778
Operating costs and expenses	5,869		(275		)	5,594
Pension and other postretirement remeasurement gains and losses	—		468			468
Restructuring and related charges	83		(16		)	67
Total costs and expenses	37,077		116			37,193
Income from operations before income tax expense	2,744		(116		)	2,628
Income tax expense	492		(24		)	468
Net income	2,252		(92		)	2,160
Net income applicable to common shareholders	$	2,104	$	(92	)	$	2,012

Earnings per common share:
Net income applicable to common shareholders per common share - Basic	$	6.05	$	(0.27	)	$	5.78
Net income applicable to common shareholders per common share - Diluted	$	5.96	$	(0.26	)	$	5.70

	Year Ended December 31, 2017
Property and casualty insurance claims and claims expense	$	21,929	$	(82	)	$	21,847
Operating costs and expenses	5,442		(246		)	5,196
Pension and other postretirement remeasurement gains and losses	—		(217		)	(217		)
Restructuring and related charges	109		(13		)	96
Total costs and expenses	35,436		(558		)	34,878
Income from operations before income tax expense	3,991		558			4,549
Income tax expense	802		193			995
Net income	3,189		365			3,554
Net income applicable to common shareholders	$	3,073	$	365		$	3,438

Earnings per common share:
Net income applicable to common shareholders per common share - Basic	$	8.49	$	1.01		$	9.50
Net income applicable to common shareholders per common share - Diluted	$	8.36	$	0.99		$	9.35



Consolidated Statements of Comprehensive Income
	Previous accounting principle			Impact of change			As reported
($ in millions)	Year Ended December 31, 2019
Net income	$	4,811		$	36		$	4,847

Other comprehensive income (loss), after-tax
Changes in:
Unrealized net capital gains and losses	1,889			—			1,889
Unrealized foreign currency translation adjustments	(4		)	(6		)	(10		)
Unrecognized pension and other postretirement benefit cost⁽¹⁾	141			(188		)	(47		)
Other comprehensive income, after-tax	2,026			(194		)	1,832

Comprehensive income	6,837			(158		)	6,679

	Year Ended December 31, 2018
Net income	$	2,252		$	(92	)	$	2,160

Other comprehensive income (loss), after-tax
Changes in:
Unrealized net capital gains and losses	(754		)	—			(754		)
Unrealized foreign currency translation adjustments	(55		)	7			(48		)
Unrecognized pension and other postretirement benefit cost⁽¹⁾	(144		)	85			(59		)
Other comprehensive loss, after-tax	(953		)	92			(861		)

Comprehensive income	1,299			—			1,299

	Year Ended December 31, 2017
Net income	$	3,189		$	365		$	3,554

Other comprehensive income (loss), after-tax
Changes in:
Unrealized net capital gains and losses	319			—			319
Unrealized foreign currency translation adjustments	47			(2		)	45
Unrecognized pension and other postretirement benefit cost⁽¹⁾	307			(359		)	(52		)
Other comprehensive income, after-tax	673			(361		)	312

Comprehensive income	3,862			4			3,866

⁽¹⁾ Financial statement line item has been updated to “Unamortized pension and other postretirement prior service credit“.



Consolidated Statements of Financial Position
	Previous accounting principle		Impact of change		As reported
($ in millions)	December 31, 2019
Retained income	49,713		(1,639	)	48,074
Unrealized foreign currency translation adjustments	(68	)	9		(59	)
Unrecognized pension and other postretirement benefit cost⁽¹⁾	(1,350	)	1,472		122
Total AOCI	469		1,481		1,950
Total shareholders’ equity	26,156		(158	)	25,998

	December 31, 2018
Retained income	45,708		(1,675	)	44,033
Unrealized foreign currency translation adjustments	(64	)	15		(49	)
Unrecognized pension and other postretirement benefit cost⁽¹⁾	(1,491	)	1,660		169
Total AOCI	(1,557	)	1,675		118
Total shareholders’ equity	21,312		—		21,312

⁽¹⁾ Financial statement line item has been updated to “Unamortized pension and other postretirement prior service credit“.



Consolidated Statements of Shareholders’ Equity
($ in millions)	Previous accounting principle			Impact of change			As reported
	Year Ended December 31, 2019
Retained income
Balance, beginning of year	$	45,708		$	(1,675	)	$	44,033
Cumulative effect of change in accounting principle	21			—			21
Net income	4,811			36			4,847
Dividends on common stock (declared per share of $2.00)	(658		)	—			(658		)
Dividends on preferred stock	(169		)	—			(169		)
Balance, end of year	49,713			(1,639		)	48,074

Accumulated other comprehensive income (loss)
Balance, beginning of year	(1,557		)	1,675			118
Cumulative effect of change in accounting principle	—			—			—
Change in unrealized net capital gains and losses	1,889			—			1,889
Change in unrealized foreign currency translation adjustments	(4		)	(6		)	(10		)
Change in unrecognized pension and other postretirement benefit cost ⁽¹⁾	141			(188		)	(47		)
Balance, end of year	$	469		$	1,481		$	1,950

	Year Ended December 31, 2018
Retained income
Balance, beginning of year	$	43,162		$	(1,583	)	$	41,579
Cumulative effect of change in accounting principle	1,088			—			1,088
Net income	2,252			(92		)	2,160
Dividends on common stock (declared per share of $1.84)	(646		)	—			(646		)
Dividends on preferred stock	(148		)	—			(148		)
Balance, end of year	45,708			(1,675		)	44,033

Accumulated other comprehensive income (loss)
Balance, beginning of year	306			1,583			1,889
Cumulative effect of change in accounting principle	(910		)	—			(910		)
Change in unrealized net capital gains and losses	(754		)	—			(754		)
Change in unrealized foreign currency translation adjustments	(55		)	7			(48		)
Change in unrecognized pension and other postretirement benefit cost ⁽¹⁾	(144		)	85			(59		)
Balance, end of year	(1,557		)	1,675			118

	Year Ended December 31, 2017
Retained income
Balance, beginning of year	$	40,678		$	(1,669	)	$	39,009
Net income	3,189			365			3,554
Dividends on common stock (declared per share of $1.48)	(540		)	—			(540		)
Dividends on preferred stock	(116		)	—			(116		)
Reclassification of tax effects due to change in accounting principle	(49		)	(279		)	(328		)
Balance, end of year	43,162			(1,583		)	41,579

Accumulated other comprehensive income (loss)
Balance, beginning of year	(416		)	1,665			1,249
Change in unrealized net capital gains and losses	319			—			319
Change in unrealized foreign currency translation adjustments	47			(2		)	45
Change in unrecognized pension and other postretirement benefit cost ⁽¹⁾	307			(359		)	(52		)
Reclassification of tax effects due to change in accounting principle	49			279			328
Balance, end of year	306			1,583			1,889

⁽¹⁾ Financial statement line item has been updated to “Change in unamortized pension and other postretirement prior service credit”.



Consolidated Statements of Cash Flows
	Previous accounting principle			Impact of change			As reported
($ in millions)	Year Ended December 31, 2019
Cash flows from operating activities
Net income	$	4,811		$	36		$	4,847
Adjustments to reconcile net income to net cash provided by operating activities:
Pension and other postretirement measurement gains and losses	—			114			114
Income taxes	477			10			487
Other operating assets and liabilities	110			(160		)	(50		)
Net cash provided by operating activities	$	5,129		$	—		$	5,129

	Year Ended December 31, 2018
Cash flows from operating activities
Net income	$	2,252		$	(92	)	$	2,160
Adjustments to reconcile net income to net cash provided by operating activities:
Pension and other postretirement measurement gains and losses	—			468			468
Income taxes	(356		)	(24		)	(380		)
Other operating assets and liabilities	1,207			(352		)	855
Net cash provided by operating activities	$	5,175		$	—		$	5,175

	Year Ended December 31, 2017
Cash flows from operating activities
Net income	$	3,189		$	365		$	3,554
Adjustments to reconcile net income to net cash provided by operating activities:
Pension and other postretirement measurement gains and losses	—			(217		)	(217		)
Income taxes	(245		)	193			(52		)
Other operating assets and liabilities	328			(341		)	(13		)
Net cash provided by operating activities	$	4,314		$	—		$	4,314

Summary of Significant Accounting Policies - Consolidated Statement of Cash Flows (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income	$ 4,847	$ 2,160	$ 3,554
Pension and other postretirement measurement gains and losses	114	468	(217)
Income taxes	487	(380)	(52)
Other operating assets and liabilities	50	(855)	13
Net cash provided by operating activities	5,129	5,175	4,314
Previously reported
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income	4,811	2,252	3,189
Pension and other postretirement measurement gains and losses	0	0	0
Income taxes	477	(356)	(245)
Other operating assets and liabilities	(110)	(1,207)	(328)
Net cash provided by operating activities	5,129	5,175	4,314
Impact of change \| Impact of change
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income	36	(92)	365
Pension and other postretirement measurement gains and losses	114	468	(217)
Income taxes	10	(24)	193
Other operating assets and liabilities	160	352	341
Net cash provided by operating activities	$ 0	$ 0	$ 0

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Summary of Significant Accounting Policies - Accounting standards (Details) - USD ($)		12 Months Ended
	Jan. 01, 2020	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017	Jan. 01, 2017	Dec. 31, 2016	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Present value of lease liabilities		$ 586,000,000
Right of use asset		$ 483,000,000
Expected returns on plan assets, smoothing period		5 years
Total shareholders’ equity		$ 25,998,000,000		$ 21,312,000,000		$ 22,551,000,000
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Present value of lease liabilities			$ 585,000,000
Right of use asset			488,000,000
Retained income
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of change in accounting principle			21,000,000		$ 1,088,000,000				$ 0
Total shareholders’ equity		48,074,000,000		44,033,000,000		41,579,000,000		$ 39,009,000,000
Retained income \| Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of change in accounting principle			21,000,000
Forecast \| Retained income \| Accounting Standards Update 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of change in accounting principle	$ (100,000,000)
Allowance for credit loss, increase (decrease)	$ 300,000,000
Change in accounting principle \| Change in accounting principle
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total shareholders’ equity		(158,000,000)	(41,000,000)	0	0
Change in accounting principle \| Change in accounting principle \| Retained income
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of change in accounting principle			$ 0		$ 0
Total shareholders’ equity		$ (1,639,000,000)		$ (1,675,000,000)		$ (1,583,000,000)	$ (1,580,000,000)	$ (1,669,000,000)

Reinsurance and Indemnification - North Carolina Reinsurance Facility (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reinsurance Retention Policy [Line Items]
Premiums earned		$ 38,577.0	$ 36,513.0	$ 34,678.0
Recoverables		6,912.0
North Carolina Reinsurance Facility
Reinsurance Retention Policy [Line Items]
Funds Deficit in Member's equity	$ 110.0
Net income	105.0
Premiums earned	1,100.0
Paid		9.4
Recoverables		$ 69.1
Private Passenger Auto Risk Recoupment \| North Carolina Reinsurance Facility
Reinsurance Retention Policy [Line Items]
Premiums earned	271.0
Member Loss Recoupments \| North Carolina Reinsurance Facility
Reinsurance Retention Policy [Line Items]
Premiums earned	$ 137.0

Quarterly Results (unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results (unaudited)



Note 21	Quarterly Results (unaudited)



	First Quarter				Second Quarter				Third Quarter				Fourth Quarter
($ in millions, except per share data)	2019		2018		2019		2018		2019		2018		2019		2018
Revenues	$	10,990	$	9,770	$	11,144	$	10,099	$	11,069	$	10,465	$	11,472	$	9,481
Net income (loss) applicable to common shareholders	1,261		977		821		678		889		942		1,707		(585		)
Earnings per common share - Basic	3.79		2.76		2.47		1.94		2.71		2.72		5.32		(1.71		)
Earnings per common share - Diluted	3.74		2.71		2.44		1.91		2.67		2.68		5.23		(1.71		)

The Company changed its accounting principle for recognizing actuarial gains and losses and expected return on plan assets for its pension and other postretirement plans to a more preferable policy under U.S. GAAP. See Note 2 for discussion of the change in accounting principle and further information regarding the impact of the change on the consolidated financial statements.



Impact of change	First Quarter				Second Quarter					Third Quarter					Fourth Quarter
($ in millions, except per share data)	2019		2018		2019			2018		2019			2018		2019		2018
Revenues	$	—	$	—	$	—		$	—	$	—		$	—	$	—	$	—
Net income (loss) applicable to common shareholders	5		31		(69		)	41		(140		)	109		240		(273		)
Earnings per common share - Basic	0.01		0.09		(0.21		)	0.12		(0.43		)	0.31		0.75		(0.80		)
Earnings per common share - Diluted	0.02		0.08		(0.20		)	0.11		(0.42		)	0.31		0.73		(0.80		)

Reserve for Life-Contingent Contract Benefits and Contractholder Funds - Reserve for life-contingent contract benefits (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Reserve for life-contingent benefits:
Total reserve for life-contingent contract benefits	$ 12,300,000,000	$ 12,208,000,000
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Premium deficiency reserve	126,000,000	0
Structured settlement annuities
Reserve for life-contingent benefits:
Total reserve for life-contingent contract benefits	$ 6,840,000,000	6,701,000,000
Structured settlement annuities \| Minimum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	3.80%
Structured settlement annuities \| Maximum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	7.50%
Other immediate fixed annuities
Reserve for life-contingent benefits:
Total reserve for life-contingent contract benefits	$ 1,612,000,000	1,714,000,000
Other immediate fixed annuities \| Minimum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	0.30%
Other immediate fixed annuities \| Maximum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	9.00%
Traditional life insurance
Reserve for life-contingent benefits:
Total reserve for life-contingent contract benefits	$ 2,897,000,000	2,808,000,000
Traditional life insurance \| Minimum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	2.50%
Traditional life insurance \| Maximum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	11.30%
Accident and health insurance
Reserve for life-contingent benefits:
Total reserve for life-contingent contract benefits	$ 873,000,000	876,000,000
Accident and health insurance \| Minimum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	3.00%
Accident and health insurance \| Maximum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	7.00%
Other
Reserve for life-contingent benefits:
Total reserve for life-contingent contract benefits	$ 78,000,000	$ 109,000,000
Other \| Minimum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	2.00%
Other \| Maximum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	5.80%

Benefit Plans - Allstate 401(k) savings plan (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Retirement Benefits [Abstract]
Principal balance of note from ESOP	$ 2,000,000
Company's contribution to the Allstate Plan	93,000,000	$ 89,000,000	$ 81,000,000
ESOP benefit computed
Interest expense recognized by ESOP	0	0	0
Less: dividends accrued on ESOP shares	(1,000,000)	(1,000,000)	(1,000,000)
Cost of shares allocated	3,000,000	0	3,000,000
Compensation expense	2,000,000	(1,000,000)	2,000,000
Reduction of defined contribution due to ESOP	43,000,000	1,000,000	38,000,000
ESOP benefit	(41,000,000)	(2,000,000)	(36,000,000)
Contributions to ESOP	$ 2,000,000	0	1,000,000
Number of committed-to-be-released (in shares)	400,000
Allocated ESOP shares (in shares)	39,000,000
Unallocated ESOP shares (in shares)	0
Defined contribution plan expense for eligible employees of Canadian insurance subsidiaries and Sterling	$ 15,000,000	$ 15,000,000	$ 12,000,000

Benefit Plans - Weighted average assumptions used (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Pension benefits
Weighted average assumptions used to determine net pension cost and net postretirement benefit cost
Discount rate	3.70%	4.06%	3.96%
Expected long-term rate of return on plan assets	7.34%	7.33%	7.32%
Weighted average assumptions used to determine benefit obligations
Discount rate	3.31%	4.31%
Postretirement benefits
Weighted average assumptions used to determine net pension cost and net postretirement benefit cost
Discount rate	3.61%	3.95%	3.91%
Weighted average assumptions used to determine benefit obligations
Discount rate	3.27%	4.22%

Quarterly Results (unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues	$ 11,472	$ 11,069	$ 11,144	$ 10,990	$ 9,481	$ 10,465	$ 10,099	$ 9,770	$ 44,675	$ 39,815	$ 39,407
Net income (loss) applicable to common shareholders	$ 1,707	$ 889	$ 821	$ 1,261	$ (585)	$ 942	$ 678	$ 977	$ 4,678	$ 2,012	$ 3,438
Earnings per common share - Basic (in dollars per share)	$ 5.32	$ 2.71	$ 2.47	$ 3.79	$ (1.71)	$ 2.72	$ 1.94	$ 2.76	$ 14.25	$ 5.78	$ 9.50
Earnings per common share - Diluted (in dollars per share)	$ 5.23	$ 2.67	$ 2.44	$ 3.74	$ (1.71)	$ 2.68	$ 1.91	$ 2.71	$ 14.03	$ 5.70	$ 9.35
Impact of change
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
Net income (loss) applicable to common shareholders	$ 240	$ (140)	$ (69)	$ 5	$ (273)	$ 109	$ 41	$ 31
Earnings per common share - Basic (in dollars per share)	$ 0.75	$ (0.43)	$ (0.21)	$ 0.01	$ (0.80)	$ 0.31	$ 0.12	$ 0.09
Earnings per common share - Diluted (in dollars per share)	$ 0.73	$ (0.42)	$ (0.20)	$ 0.02	$ (0.80)	$ 0.31	$ 0.11	$ 0.08

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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Reference 1: http://www.xbrl.org/2003/role/exampleRef
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+ Details

Acquisitions

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Acquisitions



Note 3	Acquisitions

iCracked On February 12, 2019, the Company acquired iCracked Inc. (“iCracked”) which offers on-site, on-demand repair services for smartphones and tablets in North America, supporting Allstate Protection Plans' (formerly known as SquareTrade) operations. In conjunction with the iCracked acquisition, the Company recorded goodwill of $17 million.

PlumChoice On November 30, 2018, the Company acquired PlumChoice, Inc. (“PlumChoice”) for $30 million in cash to provide technical support services to Allstate Protection Plans' customers and small businesses. In conjunction with the PlumChoice acquisition, the Company recorded goodwill of $23 million.

Allstate Identity Protection On October 5, 2018, the Company acquired InfoArmor, Inc. (“InfoArmor”), a leading provider of identity protection in the employee benefits market, for $525 million in cash. InfoArmor primarily offers identity protection to employees and their family members through voluntary benefit programs at over 1,400 firms, including more than 100 of the Fortune 500 companies. Starting in the third quarter of 2019, the Company is reporting InfoArmor using the name Allstate Identity Protection.

In connection with the acquisition, the Company recorded goodwill of $318 million and intangible assets of $257 million. The intangible assets include $225 million and $32 million related to the acquired customer relationships and technology, respectively.

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

12 Months Ended

Dec. 31, 2019

Reserve for Life-Contingent Contract Benefits and Contractholder Funds

Reserve for life-contingent contract benefits



Reserve for life-contingent contract benefits
	As of December 31,
($ in millions)	2019		2018
Immediate fixed annuities:
Structured settlement annuities	$	6,840	$	6,701
Other immediate fixed annuities	1,612		1,714
Traditional life insurance	2,897		2,808
Accident and health insurance	873		876
Other	78		109
Total reserve for life-contingent contract benefits	$	12,300	$	12,208

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



Key assumptions generally used in calculating the reserve for life-contingent contract benefits
Product	Mortality	Interest rate	Estimation method
Structured settlement annuities	U.S. population with projected calendar year improvements; mortality rates adjusted for each impaired life based on reduction in life expectancy	Interest rate assumptions range from 3.8% to 7.5%	Present value of contractually specified future benefits
Other immediate fixed annuities	1983 group annuity mortality table with internal modifications; 1983 individual annuity mortality table; Annuity 2000 mortality table with internal modifications; Annuity 2000 mortality table; 1983 individual annuity mortality table with internal modifications	Interest rate assumptions range from 0.3% to 9.0%	Present value of expected future benefits based on historical experience
Traditional life insurance	Actual company experience plus loading	Interest rate assumptions range from 2.5% to 11.3%	Net level premium reserve method using the Company’s withdrawal experience rates; includes reserves for unpaid claims
Accident and health insurance	Actual company experience plus loading	Interest rate assumptions range from 3.0% to 7.0%	Unearned premium; additional contract reserves for mortality risk and unpaid claims
Other: Variable annuity guaranteed minimum death benefits⁽¹⁾	Annuity 2012 mortality table with internal modifications	Interest rate assumptions range from 2.0% to 5.8%	Projected benefit ratio applied to cumulative assessments

⁽¹⁾

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

Contractholder funds



Contractholder funds
	As of December 31,
($ in millions)	2019		2018
Interest-sensitive life insurance	$	8,384	$	8,229
Investment contracts:
Fixed annuities	8,845		9,681
Other investment contracts	463		461
Total contractholder funds	$	17,692	$	18,371

Key contract provisions relating to contractholder funds



Key contract provisions of contractholder funds
Product	Interest rate	Withdrawal/surrender charges
Interest-sensitive life insurance	Interest rates credited range from 0.0% to 10.0% for equity-indexed life (whose returns are indexed to the S&P 500) and 1.0% to 6.0% for all other products	Either a percentage of account balance or dollar amount grading off generally over 20 years
Fixed annuities	Interest rates credited range from 0.5% to 7.5% for immediate annuities; (8.0)% to 10.0% for equity-indexed annuities (whose returns are indexed to the S&P 500); and 0.1% to 6.0% for all other products	Either a declining or a level percentage charge generally over ten years or less. Additionally, approximately 12.0% of fixed annuities are subject to market value adjustment for discretionary withdrawals
Other investment contracts: Guaranteed minimum income, accumulation and withdrawal benefits on variable ⁽¹⁾ and fixed annuities and secondary guarantees on interest-sensitive life insurance and fixed annuities	Interest rates used in establishing reserves range from 1.7% to 10.3%	Withdrawal and surrender charges are based on the terms of the related interest-sensitive life insurance or fixed annuity contract

⁽¹⁾

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

Contractholder funds activity



Contractholder funds activity
	For the years ended December 31,
($ in millions)	2019			2018			2017
Balance, beginning of year	$	18,371		$	19,434		$	20,260
Deposits	1,091			1,109			1,130
Interest credited	636			650			687
Benefits	(791		)	(844		)	(901		)
Surrenders and partial withdrawals	(884		)	(1,135		)	(999		)
Contract charges	(825		)	(824		)	(826		)
Net transfers from separate accounts	10			6			5
Other adjustments	84			(25		)	78
Balance, end of year	$	17,692		$	18,371		$	19,434

Variable annuity contracts with guarantees



($ in millions)	As of December 31,
	2019		2018
In the event of death
Separate account value	$	2,928	$	2,711
Net amount at risk ⁽¹⁾	$	373	$	605
Average attained age of contractholders	71 years		71 years
At annuitization (includes income benefit guarantees)
Separate account value	$	848	$	778
Net amount at risk ⁽²⁾	$	173	$	264
Weighted average waiting period until annuitization options available	None		None
For cumulative periodic withdrawals
Separate account value	$	190	$	190
Net amount at risk ⁽³⁾	$	13	$	16
Accumulation at specified dates
Separate account value	$	123	$	129
Net amount at risk ⁽⁴⁾	$	15	$	26
Weighted average waiting period until guarantee date	4 years		4 years


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


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


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

⁽⁴⁾

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

Liabilities for guarantees



Summary of liabilities for guarantees
($ in millions)	Liability for guarantees related to death benefits and interest-sensitive life products			Liability for guarantees related to income benefits		Liability for guarantees related to accumulation and withdrawal benefits		Total
Balance, December 31, 2018 ⁽¹⁾	$	308		$	39	$	97	$	444
Less reinsurance recoverables	111			35		39		185
Net balance as of December 31, 2018	197			4		58		259
Incurred guarantee benefits	18			—		12		30
Paid guarantee benefits	(3		)	—		—		(3		)
Net change	15			—		12		27
Net balance as of December 31, 2019	212			4		70		286
Plus reinsurance recoverables	81			20		32		133
Balance, December 31, 2019 ⁽²⁾	$	293		$	24	$	102	$	419

Balance, December 31, 2017 ⁽³⁾	$	262		$	29	$	79	$	370
Less reinsurance recoverables	87			25		34		146
Net balance as of December 31, 2017	175			4		45		224
Incurred guarantee benefits	24			—		13		37
Paid guarantee benefits	(2		)	—		—		(2		)
Net change	22			—		13		35
Net balance as of December 31, 2018	197			4		58		259
Plus reinsurance recoverables	111			35		39		185
Balance, December 31, 2018 ⁽¹⁾	$	308		$	39	$	97	$	444


⁽¹⁾	Included in the total liability balance as of December 31, 2018 are reserves for variable annuity death benefits of $109 million, variable annuity income benefits of $36 million, variable annuity accumulation benefits of $25 million, variable annuity withdrawal benefits of $14 million and other guarantees of $260 million.


⁽²⁾	Included in the total liability balance as of December 31, 2019 are reserves for variable annuity death benefits of $78 million, variable annuity income benefits of $21 million, variable annuity accumulation benefits of $18 million, variable annuity withdrawal benefits of $14 million and other guarantees of $288 million.

⁽³⁾

Investments - Nonimpaired and impaired mortgage loans (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Carrying value of non-impaired mortgage loans, summarized by debt service coverage ratio distribution
Total				$ 4,817	$ 4,670
Rollforward of the valuation allowance on impaired mortgage loans
Fixed income securities				59,044	57,170
Mortgage loans, non-impaired
Carrying value of non-impaired mortgage loans, summarized by debt service coverage ratio distribution
Fixed rate mortgage loans				4,721	4,534
Variable rate mortgage loans				88	132
Total				4,809	4,666
Net carrying value of impaired mortgage loans
Impaired mortgage loans with a valuation allowance				8	4
Impaired mortgage loans without a valuation allowance				0	0
Total impaired mortgage loans				8	4
Valuation allowance on impaired mortgage loans	$ 3	$ 3	$ 3	3	3
Rollforward of the valuation allowance on impaired mortgage loans
Beginning balance	3	3	3
Net increase in valuation allowance	0	0	1
Charge offs	0	0	(1)
Ending balance	3	3	3
Mortgage loans, non-impaired \| Below 1.0
Carrying value of non-impaired mortgage loans, summarized by debt service coverage ratio distribution
Fixed rate mortgage loans				13	6
Variable rate mortgage loans				32	31
Total				45	37
Mortgage loans, non-impaired \| 1.0 - 1.25
Carrying value of non-impaired mortgage loans, summarized by debt service coverage ratio distribution
Fixed rate mortgage loans				225	273
Variable rate mortgage loans				0	0
Total				225	273
Mortgage loans, non-impaired \| 1.26 - 1.50
Carrying value of non-impaired mortgage loans, summarized by debt service coverage ratio distribution
Fixed rate mortgage loans				1,219	1,192
Variable rate mortgage loans				18	0
Total				1,237	1,192
Mortgage loans, non-impaired \| Above 1.50
Carrying value of non-impaired mortgage loans, summarized by debt service coverage ratio distribution
Fixed rate mortgage loans				3,264	3,063
Variable rate mortgage loans				38	101
Total				3,302	3,164
Mortgage loans
Average carrying value and interest income recognized on impaired mortgage loans
Average impaired mortgage loans	$ 5	$ 4	$ 7
Municipal
Rollforward of the valuation allowance on impaired mortgage loans
Fixed income securities				$ 8,620	$ 9,169

Reporting Segments - Impacts of Tax Legislation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting Information
Total income tax expense	$ 1,242	$ 468	$ 995
Property-Liability
Segment Reporting Information
Total income tax expense	1,196	613	1,285
Service Businesses
Segment Reporting Information
Total income tax expense	(18)	(19)	(194)
Allstate Life
Segment Reporting Information
Total income tax expense	53	75	(226)
Allstate Benefits
Segment Reporting Information
Total income tax expense	35	32	1
Allstate Annuities
Segment Reporting Information
Total income tax expense	73	(66)	(58)
Corporate and Other
Segment Reporting Information
Total income tax expense	$ (97)	$ (167)	$ 187

Benefit Plans - Rollforward of level 3 plan assets (Details) - Pension benefits - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Change in pension plan assets
Fair value of plan assets, beginning of year	$ 5,299	$ 6,284
Fair value of plan assets, end of year	6,192	5,299	$ 6,284
Significant unobservable inputs (Level 3)
Change in pension plan assets
Fair value of plan assets, beginning of year	5	39	10
Actual return on plan assets: Relating to assets sold during the period	0	0	0
Actual return on plan assets: Relating to assets still held at the reporting date	0	3	0
Purchases, sales and settlements, net	(5)	(5)	29
Net transfers in and/or (out) of Level 3	0	(32)	0
Fair value of plan assets, end of year	0	5	39
Significant unobservable inputs (Level 3) \| Equity securities
Change in pension plan assets
Fair value of plan assets, beginning of year	0	29	0
Actual return on plan assets: Relating to assets sold during the period	0	0	0
Actual return on plan assets: Relating to assets still held at the reporting date	0	3	0
Purchases, sales and settlements, net	0	0	29
Net transfers in and/or (out) of Level 3	0	(32)	0
Fair value of plan assets, end of year	0	0	29
Significant unobservable inputs (Level 3) \| Corporate
Change in pension plan assets
Fair value of plan assets, beginning of year	5	10	10
Actual return on plan assets: Relating to assets sold during the period	0	0	0
Actual return on plan assets: Relating to assets still held at the reporting date	0	0	0
Purchases, sales and settlements, net	(5)	(5)	0
Net transfers in and/or (out) of Level 3	0	0	0
Fair value of plan assets, end of year	$ 0	$ 5	$ 10

Investments - Gross unrealized losses by unrealized loss position and credit quality (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Investment grade
Investment [Line Items]
Fixed income securities with unrealized loss position less than 20% of amortized cost	$ (48,000,000)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost	(13,000,000)
Total unrealized losses	(61,000,000)	$ (691,000,000)
Below investment grade
Investment [Line Items]
Fixed income securities with unrealized loss position less than 20% of amortized cost	(27,000,000)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost	(8,000,000)
Total unrealized losses	(35,000,000)	(266,000,000)
Available for sale securities, unrealized losses having loss of less than twenty percent, less than 12 months	14,000,000
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	0
Fixed income securities
Investment [Line Items]
Fixed income securities with unrealized loss position less than 20% of amortized cost	(75,000,000)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost	(21,000,000)
Total unrealized losses	$ (96,000,000)	$ (957,000,000)

Reinsurance and Indemnification - Effects of reinsurance on property and casualty premiums (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property and casualty insurance premiums earned
Direct	$ 39,178	$ 36,978	$ 35,115
Assumed	806	841	837
Ceded	(1,407)	(1,306)	(1,274)
Net amount	38,577	36,513	34,678
Property-liability insurance premiums earned
Property and casualty insurance premiums written
Direct	37,976	35,895	33,685
Assumed	95	99	64
Ceded	(1,117)	(1,008)	(1,007)
Property and casualty insurance premiums written, net of recoverables	36,954	34,986	32,742
Property and casualty insurance premiums earned
Direct	37,104	34,977	33,221
Assumed	94	87	50
Ceded	(1,122)	(1,016)	(971)
Net amount	36,076	34,048	32,300
Life and annuity premiums and contract charges
Life premiums and contract charges
Direct	2,074	2,001	1,894
Assumed	712	754	787
Ceded	(285)	(290)	(303)
Life premiums and contract charges, net of recoverables	$ 2,501	$ 2,465	$ 2,378

Reporting Segments - Reportable segments revenue information (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting Information
Premiums earned									$ 38,577	$ 36,513	$ 34,678
Net investment income									3,159	3,240	3,401
Realized capital gains and losses									1,885	(877)	445
Total revenues	$ 11,472	$ 11,069	$ 11,144	$ 10,990	$ 9,481	$ 10,465	$ 10,099	$ 9,770	44,675	39,815	39,407
Allstate Protection
Segment Reporting Information
Premiums earned									34,843	32,950	31,433
Discontinued Lines and Coverages
Segment Reporting Information
Premiums earned									0	0	0
Property-Liability
Segment Reporting Information
Premiums earned									34,843	32,950	31,433
Net investment income									1,533	1,464	1,478
Realized capital gains and losses									1,470	(639)	401
Total revenues									38,587	34,513	34,015
Property-Liability \| Auto
Segment Reporting Information
Premiums earned									24,188	22,970	21,878
Property-Liability \| Homeowners
Segment Reporting Information
Premiums earned									7,912	7,517	7,310
Property-Liability \| Other personal lines
Segment Reporting Information
Premiums earned									1,861	1,808	1,750
Property-Liability \| Commercial lines
Segment Reporting Information
Premiums earned									882	655	495
Service Businesses
Segment Reporting Information
Intersegment premiums and service fees									154	122	110
Net investment income									42	27	16
Realized capital gains and losses									32	(11)	0
Total revenues									1,649	1,318	1,059
Service Businesses \| Consumer product protection plans
Segment Reporting Information
Insurance commissions and fees									633	503	295
Service Businesses \| Roadside assistance
Segment Reporting Information
Insurance commissions and fees									238	263	268
Service Businesses \| Finance and insurance products
Segment Reporting Information
Insurance commissions and fees									362	332	304
Allstate Life
Segment Reporting Information
Net investment income									514	505	489
Realized capital gains and losses									1	(14)	5
Total revenues									1,983	1,925	1,888
Allstate Life \| Traditional life insurance
Segment Reporting Information
Insurance commissions and fees									630	600	568
Allstate Life \| Accident and health insurance premiums
Segment Reporting Information
Insurance commissions and fees									2	2	2
Allstate Life \| Interest-sensitive life insurance contract charges
Segment Reporting Information
Insurance commissions and fees									711	713	710
Allstate Benefits
Segment Reporting Information
Net investment income									83	77	72
Realized capital gains and losses									12	(9)	1
Total revenues									1,240	1,203	1,157
Allstate Benefits \| Traditional life insurance
Segment Reporting Information
Insurance commissions and fees									43	44	42
Allstate Benefits \| Accident and health insurance premiums
Segment Reporting Information
Insurance commissions and fees									988	980	928
Allstate Benefits \| Interest-sensitive life insurance contract charges
Segment Reporting Information
Insurance commissions and fees									114	111	114
Allstate Annuities
Segment Reporting Information
Net investment income									917	1,096	1,305
Realized capital gains and losses									346	(166)	44
Total revenues									1,276	945	1,363
Allstate Annuities \| Fixed annuities contract charges
Segment Reporting Information
Insurance commissions and fees									13	15	14
Corporate and Other
Segment Reporting Information
Net investment income									70	71	41
Realized capital gains and losses									24	(38)	(6)
Total revenues									94	33	35
Operating Segments \| Property-Liability
Segment Reporting Information
Insurance commissions and fees									741	738	703
Operating Segments \| Service Businesses
Segment Reporting Information
Insurance commissions and fees									188	82	66
Operating Segments \| Allstate Life
Segment Reporting Information
Insurance commissions and fees									125	119	114
Intersegment eliminations
Segment Reporting Information
Total revenues									$ (154)	$ (122)	$ (110)

Derivative Financial Instruments and Off-balance sheet Financial Instruments - Derivatives not designated as accounting hedges (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	$ 25	$ 59	$ 38
Realized capital gains (losses)
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(15)	43	(46)
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	7	(5)	9
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	(7)	43	41
Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	40	(22)	34
Interest rate contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	51	(2)
Interest rate contracts \| Realized capital gains (losses)
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	51	(2)
Interest rate contracts \| Life and annuity contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0
Interest rate contracts \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0
Interest rate contracts \| Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0
Equity and index contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(13)	(24)	60
Equity and index contracts \| Realized capital gains (losses)
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(116)	21	(15)
Equity and index contracts \| Life and annuity contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0
Equity and index contracts \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	63	(24)	47
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	40	(21)	28
Embedded derivative financial instruments
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(63)	62	3
Embedded derivative financial instruments \| Realized capital gains (losses)
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0
Embedded derivative financial instruments \| Life and annuity contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	7	(5)	9
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	(70)	67	(6)
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
Foreign currency contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	8	28	(21)
Foreign currency contracts \| Realized capital gains (losses)
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	8	29	(27)
Foreign currency contracts \| Life and annuity contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0
Foreign currency contracts \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0
Foreign currency contracts \| Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	(1)	6
Credit default contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(8)	2	(4)
Credit default contracts \| Realized capital gains (losses)
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(8)	2	(4)
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
Total return swap agreements - fixed income
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	14	(1)
Total return swap agreements - fixed income \| Realized capital gains (losses)
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	14	(1)
Total return swap agreements - fixed income \| 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
Total return swap agreements - fixed income \| 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
Total return swap agreements - fixed income \| 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
Total return swap agreements - equity index
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	36	(6)
Total return swap agreements - equity index \| Realized capital gains (losses)
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	36	(6)
Total return swap agreements - equity index \| 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
Total return swap agreements - equity index \| 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
Total return swap agreements - equity index \| 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