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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

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



($ in millions)	2019		2018
Immediate fixed annuities:
Structured settlement annuities	$	6,840	$	6,701
Other immediate fixed annuities	1,607		1,709
Traditional life insurance	2,552		2,517
Accident and health insurance	195		203
Other	78		109
Total reserve for life-contingent contract benefits	$	11,272	$	11,239

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

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



Product	Mortality	Interest rate	Estimation method
Structured settlement annuities	U.S. population with projected calendar year improvements; mortality rates adjusted for each impaired life based on reduction in life expectancy	Interest rate assumptions range from 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

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



($ in millions)	2019		2018
Interest-sensitive life insurance	$	7,442	$	7,369
Investment contracts:
Fixed annuities	8,811		9,645
Other investment contracts	458		456
Total contractholder funds	$	16,711	$	17,470

Key contract provisions relating to contractholder funds

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



Product	Interest rate	Withdrawal/surrender charges
Interest-sensitive life insurance	Interest rates credited range from 0.0% 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 is as follows:



($ in millions)	2019			2018			2017
Balance, beginning of year	$	17,470		$	18,592		$	19,470
Deposits	834			863			909
Interest credited	581			597			635
Benefits	(769		)	(810		)	(871		)
Surrenders and partial withdrawals	(844		)	(1,095		)	(960		)
Contract charges	(637		)	(645		)	(655		)
Net transfers from separate accounts	11			7			4
Other adjustments	65			(39		)	60
Balance, end of year	$	16,711		$	17,470		$	18,592

Variable annuity contracts with guarantees

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	$	2,908	$	2,694
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

The following table summarizes the liabilities for guarantees.



($ in millions)	Liability for guarantees related to death benefits and interest-sensitive life products			Liability for guarantees related to income benefits		Liability for guarantees related to accumulation and withdrawal benefits		Total
Balance, December 31, 2018 ⁽¹⁾	$	307		$	38	$	98	$	443
Less reinsurance recoverables	111			35		39		185
Net balance as of December 31, 2018	196			3		59		258
Incurred guarantee benefits	18			—		12		30
Paid guarantee benefits	(3		)	—		—		(3		)
Net change	15			—		12		27
Net balance as of December 31, 2019	211			3		71		285
Plus reinsurance recoverables	81			20		32		133
Balance, December 31, 2019 ⁽²⁾	$	292		$	23	$	103	$	418

Balance, December 31, 2017 ⁽³⁾	$	261		$	28	$	80	$	369
Less reinsurance recoverables	87			25		34		146
Net balance as of December 31, 2017	174			3		46		223
Incurred guarantee benefits	24			—		13		37
Paid guarantee benefits	(2		)	—		—		(2		)
Net change	22			—		13		35
Net balance as of December 31, 2018	196			3		59		258
Plus reinsurance recoverables	111			35		39		185
Balance, December 31, 2018 ⁽¹⁾	$	307		$	38	$	98	$	443

____________


⁽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 $259 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 $287 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 $224 million.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues
Premiums (net of reinsurance ceded of $139, $138 and $149)	$ 677	$ 704	$ 690
Contract charges, Other revenue	682	695	703
Net investment income	1,411	1,585	1,777
Realized capital gains and losses:
Total other-than-temporary impairment (“OTTI”) losses	(24)	(7)	(46)
OTTI losses reclassified to (from) other comprehensive income (OCI)	3	(2)	1
Net OTTI losses recognized in earnings	(21)	(9)	(45)
Sales and valuation changes on equity investments and derivatives	362	(166)	94
Total realized capital gains and losses	341	(175)	49
Total revenues	3,153	2,847	3,259
Costs and expenses
Contract benefits (net of reinsurance ceded of $187, $249 and $208)	1,481	1,446	1,430
Interest credited to contractholder funds (net of reinsurance ceded of $40, $44 and $46)	585	601	639
Amortization of deferred policy acquisition costs	180	146	152
Operating costs and expenses	249	271	321
Restructuring and related charges	1	2	2
Interest expense	5	5	4
Total costs and expenses	2,501	2,471	2,548
Gain on disposition of operations	6	6	7
Income from operations before income tax expense	658	382	718
Income tax expense (benefit)	128	17	(278)
Net income	530	365	996
Other comprehensive income (loss), after-tax
Change in unrealized net capital gains and losses	679	(354)	5
Change in unrealized foreign currency translation adjustments	(17)	0	11
Other comprehensive income (loss), after-tax	662	(354)	16
Comprehensive income	1,192	11	1,012
Product and Service, Other [Member]
Revenues
Contract charges, Other revenue	$ 42	$ 38	$ 40

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Fixed income securities, at fair value, amortized cost (in dollars)	$ 20,217	$ 21,057
Equity securities, at fair value, cost (in dollars)	1,123	1,197
Short-term, at fair value, amortized cost (in dollars)	$ 1,191	$ 810
Common stock, par value (in dollars per share)	$ 227	$ 227
Common stock, shares authorized	23,800	23,800
Common stock, shares outstanding	23,800	23,800
Series A
Redeemable preferred stock, par value (in dollars per share)	$ 100	$ 100
Redeemable preferred stock, shares authorized	1,500,000	1,500,000
Redeemable preferred stock, shares issued	0	0
Series B
Redeemable preferred stock, par value (in dollars per share)	$ 100	$ 100
Redeemable preferred stock, shares authorized	1,500,000	1,500,000
Redeemable preferred stock, shares issued	0	0

Investments - Valuation changes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Investments
Total	$ 273	$ 35
Limited partnership interests
Investments
Total	57	113
Equity securities
Investments
Total	$ 216	$ (78)

Derivative Financial Instruments and Off-balance sheet Financial Instruments - CDS notional amounts by credit rating (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) entity	Dec. 31, 2018 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Term of credit default swaps (in years)	5 years
Credit Derivatives
Notional amount	$ 2,385	$ 2,399
The number of reference entities generally included in a CDX index \| entity	125
Credit default contracts
Credit Derivatives
Notional amount	$ 5	1
Fair value	0	0
Credit default contracts \| Single name \| Corporate debt
Credit Derivatives
Notional amount	5	1
Fair value	0	0
AA \| Credit default contracts
Credit Derivatives
Notional amount	0	0
AA \| Credit default contracts \| Single name \| Corporate debt
Credit Derivatives
Notional amount	0	0
A \| Credit default contracts
Credit Derivatives
Notional amount	0	0
A \| Credit default contracts \| Single name \| Corporate debt
Credit Derivatives
Notional amount	0	0
BBB \| Credit default contracts
Credit Derivatives
Notional amount	0	0
BBB \| Credit default contracts \| Single name \| Corporate debt
Credit Derivatives
Notional amount	0	0
BB and lower \| Credit default contracts
Credit Derivatives
Notional amount	5	1
BB and lower \| Credit default contracts \| Single name \| Corporate debt
Credit Derivatives
Notional amount	$ 5	$ 1

General

12 Months Ended

Dec. 31, 2019

General

General

Basis of presentation

The accompanying consolidated financial statements include the accounts of Allstate Life Insurance Company (“ALIC”) and its wholly owned subsidiaries (collectively referred to as the “Company”). ALIC is wholly owned by Allstate Insurance Company (“AIC”), which is wholly owned by Allstate Insurance Holdings, LLC, a wholly owned subsidiary of The Allstate Corporation (the “Corporation”). 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.

The Company operates as a single segment entity based on the manner in which the Company uses financial information to evaluate business performance and to determine the allocation of resources.

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

The Company offers traditional, interest-sensitive and variable life insurance in New York and term conversion interest-sensitive life insurance countrywide. The Company previously sold traditional life insurance countrywide through June 2019 and variable life insurance nationwide through September 2017. The Company distributes its products through Allstate exclusive agencies and exclusive financial specialists. The Company also offers voluntary accident and health insurance through workplace enrolling independent agents and benefits brokers in New York. The Company previously offered and continues to have in force fixed annuities such as deferred and immediate annuities. The Company also previously offered variable annuities and substantially all of this business is reinsured.

The following table summarizes premiums and contract charges by product.



($ in millions)	2019		2018		2017
Premiums
Traditional life insurance	$	557	$	582	$	579
Accident and health insurance	120		122		111
Total premiums	677		704		690

Contract charges
Interest-sensitive life insurance	669		680		689
Fixed annuities	13		15		14
Total contract charges	682		695		703
Total premiums and contract charges	$	1,359	$	1,399	$	1,393

The Company, through several subsidiaries, operates in the U.S. (all 50 states and the District of Columbia). For 2019, the top geographic locations for direct statutory premiums and annuity considerations were New York, California, Texas, Florida and Illinois. No other jurisdiction accounted for more than 5% of direct statutory premiums and annuity considerations.

Fair Value of Assets and Liabilities - Change in unrealized gains and losses (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:
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	$ 2	$ 16	$ 9
Gains (losses) for Level 3 liabilities still held at the balance sheet date, included in earnings	(52)	57	1
Total included in net income	(50)	73	10
Net investment income
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets and liabilities still held at the balance sheet date	(2)	0	10
Interest credited to contractholder funds
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets and liabilities still held at the balance sheet date	(59)	62	(9)
Contract benefits
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets and liabilities still held at the balance sheet date	7	(5)	9
Realized capital gains and losses
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets and liabilities still held at the balance sheet date	4	16	0
Municipal
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, included in earnings	1	0	0
Corporate
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, included in earnings	0	0	1
Fixed income securities
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, included in earnings	1	0	1
Equity securities
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, included in earnings	2	16	9
Free-standing derivatives, net
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, included in earnings	(1)	0	0
Other assets
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, included in earnings	0	0	(1)
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	$ (52)	$ 57	$ 1

Reserve for Life-Contingent Contract Benefits and Contractholder Funds - Variable annuity contracts with guarantees and other (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	$ 2,660	$ 2,450
Account balances of separate accounts with guarantees, invested in money market mutual funds	252	245
In the event of death
Variable annuity contracts with guarantees
Separate account value	2,908	2,694
Net amount at risk	$ 373	$ 605
Average attained age of contractholders	71 years	71 years
Liability for guarantees related to income benefits
Variable annuity contracts with guarantees
Separate account value	$ 848	$ 778
Net amount at risk	$ 173	$ 264
Weighted average waiting period until guarantee date	0 years	0 years
For cumulative periodic withdrawals
Variable annuity contracts with guarantees
Separate account value	$ 190	$ 190
Net amount at risk	13	16
Guaranteed accumulation benefits
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

Investments - Scheduled maturities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Amortized cost
Due in one year or less	$ 1,360
Due after one year through five years	7,690
Due after five years through ten years	7,455
Due after ten years	3,269
Subtotal	19,774
ABS and MBS	443
Amortized cost	20,217	$ 21,057
Fair value
Due in one year or less	1,374
Due after one year through five years	7,994
Due after five years through ten years	7,955
Due after ten years	3,904
Subtotal	21,227
ABS and MBS	498
Total	$ 21,725	$ 21,400

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

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



($ in millions)	2019		2018
Immediate fixed annuities:
Structured settlement annuities	$	6,840	$	6,701
Other immediate fixed annuities	1,607		1,709
Traditional life insurance	2,552		2,517
Accident and health insurance	195		203
Other	78		109
Total reserve for life-contingent contract benefits	$	11,272	$	11,239

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



Product	Mortality	Interest rate	Estimation method
Structured settlement annuities	U.S. population with projected calendar year improvements; mortality rates adjusted for each impaired life based on reduction in life expectancy	Interest rate assumptions range from 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”).

To the extent that unrealized gains on fixed income securities would result in a premium deficiency had those gains actually been realized, an insurance reserves adjustment is recorded for certain immediate annuities with life contingencies. This liability is included in the reserve for life-contingent contract benefits with respect to this unrealized 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.

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



($ in millions)	2019		2018
Interest-sensitive life insurance	$	7,442	$	7,369
Investment contracts:
Fixed annuities	8,811		9,645
Other investment contracts	458		456
Total contractholder funds	$	16,711	$	17,470

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



Product	Interest rate	Withdrawal/surrender charges
Interest-sensitive life insurance	Interest rates credited range from 0.0% 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 is as follows:



($ in millions)	2019			2018			2017
Balance, beginning of year	$	17,470		$	18,592		$	19,470
Deposits	834			863			909
Interest credited	581			597			635
Benefits	(769		)	(810		)	(871		)
Surrenders and partial withdrawals	(844		)	(1,095		)	(960		)
Contract charges	(637		)	(645		)	(655		)
Net transfers from separate accounts	11			7			4
Other adjustments	65			(39		)	60
Balance, end of year	$	16,711		$	17,470		$	18,592

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 $2.66 billion and $2.45 billion of equity, fixed income and balanced mutual funds and $252 million and $245 million of money market mutual funds as of December 31, 2019 and 2018, respectively.



($ in millions)	As of December 31,
	2019		2018
In the event of death
Separate account value	$	2,908	$	2,694
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 contract benefits.

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

The following table summarizes the liabilities for guarantees.



($ in millions)	Liability for guarantees related to death benefits and interest-sensitive life products			Liability for guarantees related to income benefits		Liability for guarantees related to accumulation and withdrawal benefits		Total
Balance, December 31, 2018 ⁽¹⁾	$	307		$	38	$	98	$	443
Less reinsurance recoverables	111			35		39		185
Net balance as of December 31, 2018	196			3		59		258
Incurred guarantee benefits	18			—		12		30
Paid guarantee benefits	(3		)	—		—		(3		)
Net change	15			—		12		27
Net balance as of December 31, 2019	211			3		71		285
Plus reinsurance recoverables	81			20		32		133
Balance, December 31, 2019 ⁽²⁾	$	292		$	23	$	103	$	418

Balance, December 31, 2017 ⁽³⁾	$	261		$	28	$	80	$	369
Less reinsurance recoverables	87			25		34		146
Net balance as of December 31, 2017	174			3		46		223
Incurred guarantee benefits	24			—		13		37
Paid guarantee benefits	(2		)	—		—		(2		)
Net change	22			—		13		35
Net balance as of December 31, 2018	196			3		59		258
Plus reinsurance recoverables	111			35		39		185
Balance, December 31, 2018 ⁽¹⁾	$	307		$	38	$	98	$	443

____________


⁽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 $259 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 $287 million.

⁽³⁾

Fair Value of Assets and Liabilities - Significant unobservable inputs (Details) $ in Millions	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Quantitative information about the significant unobservable inputs
Fair value	$ 21,725	$ 21,400
Significant unobservable inputs (Level 3)
Quantitative information about the significant unobservable inputs
Fair value	208	191
Assets at fair value	324	321
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options \| Significant unobservable inputs (Level 3)
Quantitative information about the significant unobservable inputs
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	(395)	(184)
Fixed Income Securities Valued Based on Nonbinding Broker Quotes [Member] \| Significant unobservable inputs (Level 3)
Quantitative information about the significant unobservable inputs
Assets at fair value	$ 38	$ 80
Projected option cost \| Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options \| Significant unobservable inputs (Level 3) \| Maximum
Quantitative information about the significant unobservable inputs
Range	0.042	0.022
Projected option cost \| Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options \| Significant unobservable inputs (Level 3) \| Minimum
Quantitative information about the significant unobservable inputs
Range	0.010	0.010
Projected option cost \| Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options \| Significant unobservable inputs (Level 3) \| Weighted average
Quantitative information about the significant unobservable inputs
Range	0.0257	0.0174

Guarantees and Contingent Liabilities (Details) - Guaranty funds - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Guarantees and Contingent Liabilities
Liability for insurance assessments	$ 4	$ 4
Insurance assessments, premium tax offsets	$ 6	$ 7

Capital Structure (Details) - USD ($) $ in Millions	12 Months Ended
Capital Structure (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Interest paid	$ 5	$ 5	$ 6
Limited Partnership
Debt Instrument [Line Items]
Liabilities assumed	$ 61	$ 62

Reinsurance - Reinsurance items (Details)	1 Months Ended	12 Months Ended			33 Months Ended	45 Months Ended	48 Months Ended	106 Months Ended
Reinsurance - Reinsurance items (Details)	Aug. 31, 1998 USD ($)	Dec. 31, 2019 USD ($) item	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 USD ($)	Mar. 31, 2011 USD ($)	Mar. 31, 2015 USD ($)	Jun. 30, 2007 USD ($)
Reinsurance recoverable
Number of unaffiliated reinsurers \| item		14
Reinsurance retention policy, amount retained	$ 1,000,000					$ 5,000,000		$ 2,000,000
Retention level for contracts issued to individuals age 70 and over						3,000,000
Retention level for certain large contracts meeting specific criteria						$ 10,000,000		$ 5,000,000
Reinsurance recoverable		$ 2,490,000,000	$ 2,605,000,000
Interest credited to contractholder funds, reinsurance ceded		40,000,000	44,000,000	$ 46,000,000
Investments held by trust		1,450,000,000
Gross life insurance in force		391,530,000,000
Life insurance in force ceded to unaffiliated reinsurers		$ 75,159,000,000	83,166,000,000	89,603,000,000	$ 89,603,000,000
Maximum
Reinsurance recoverable
Percent of morbidity risk ceded for term-life insurance policies		90.00%
Prudential
Reinsurance recoverable
Reinsurance recoverable		$ 1,290,000,000	1,360,000,000
Life and annuity premiums and contract charges, reinsurance ceded		65,000,000	72,000,000	76,000,000
Life and annuity contract benefits, reinsurance ceded		4,000,000	87,000,000	7,000,000
Interest credited to contractholder funds, reinsurance ceded		19,000,000	20,000,000	20,000,000
Operating costs and expenses, reinsurance ceded		12,000,000	14,000,000	15,000,000
Citigroup Subsidiaries and Scottish Re
Reinsurance recoverable
Reinsurance recoverable		112,000,000	118,000,000
Scottish Re
Reinsurance recoverable
Reinsurance recoverable		70,000,000
Single life
Reinsurance recoverable
Reinsurance retention policy, amount retained					$ 2,000,000		$ 5,000,000
Retention level for contracts issued to individuals age 70 and over							3,000,000
Retention level for certain large contracts meeting specific criteria							10,000,000
Joint life
Reinsurance recoverable
Reinsurance retention policy, amount retained							8,000,000
Retention level for certain large contracts meeting specific criteria							$ 10,000,000
Lincoln Benefit Life Company
Reinsurance recoverable
Investments held by trust		6,250,000,000
Affiliate
Reinsurance recoverable
Reinsurance recoverable		408,000,000	420,000,000
Life and annuity premiums and contract charges, reinsurance ceded		49,000,000	51,000,000	52,000,000
Life and annuity contract benefits, reinsurance ceded		35,000,000	35,000,000	33,000,000
Interest credited to contractholder funds, reinsurance ceded		20,000,000	20,000,000	21,000,000
Life insurance in force ceded to unaffiliated reinsurers		4,400,000,000
Non-affiliate
Reinsurance recoverable
Life and annuity premiums and contract charges, reinsurance ceded		270,000,000	275,000,000	288,000,000
Life and annuity contract benefits, reinsurance ceded		152,000,000	214,000,000	175,000,000
Interest credited to contractholder funds, reinsurance ceded		20,000,000	$ 24,000,000	$ 25,000,000
Life insurance in force ceded to unaffiliated reinsurers		$ 70,760,000,000

Investments - Schedule of gain (loss) on investments by transaction type (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Schedule of Available for Sale Securities
Realized gain	$ 65	$ 34
Realized loss	$ 35	$ 66
Fixed income securities
Schedule of Available for Sale Securities
Realized gain			$ 134
Realized loss			$ 86

Derivative Financial Instruments and Off-balance sheet Financial Instruments - Volume and fair value positions of derivative instruments (Details)	12 Months Ended
	Dec. 31, 2019 USD ($) contract	Dec. 31, 2018 USD ($) contract	Dec. 31, 2017 contract
Derivatives, Fair Value
Assumed recoveries under sale of credit protection	$ 0
Securities pledged in the form of margin deposits	6,000,000
Total asset derivatives, Notional amount	10,000,000	$ 292,000,000
Total liability derivatives, Notional amount	2,375,000,000	2,107,000,000
Total derivatives, Notional amount	$ 2,385,000,000	$ 2,399,000,000
Total asset derivatives, Number of contracts \| contract	3,484	3,796
Total liability derivatives, Number of contracts \| contract	3,108	3,266
Total derivatives, Number of contracts \| contract	6,592	7,062
Total asset derivatives, Fair value, net	$ 124,000,000	$ 28,000,000
Asset derivatives, Gross asset	124,000,000	30,000,000
Asset derivatives, Gross liability	0	(2,000,000)
Derivative liabilities net amount on balance sheet	(482,000,000)	(227,000,000)
Total derivatives, Fair value, net	(358,000,000)	(199,000,000)
Liability derivatives, Gross asset	10,000,000	1,000,000
Liability derivatives, Gross liability	(492,000,000)	(228,000,000)
Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	$ 8,000,000
Total asset derivatives, Number of contracts \| contract	3,484
Total asset derivatives, Fair value, net	$ 124,000,000
Asset derivatives, Gross asset	124,000,000
Asset derivatives, Gross liability	0
Interest rate cap agreements \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount		31,000,000
Derivative liabilities net amount on balance sheet		1,000,000
Liability derivatives, Gross asset		1,000,000
Liability derivatives, Gross liability		0
Interest rate cap agreements \| Derivatives not designated as accounting hedging instruments \| Other investments
Derivatives, Fair Value
Total asset derivatives, Notional amount		6,000,000
Total asset derivatives, Fair value, net		0
Asset derivatives, Gross asset		0
Asset derivatives, Gross liability		0
Interest rate cap agreements \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount	34,000,000
Derivative liabilities net amount on balance sheet	0
Liability derivatives, Gross asset	0
Liability derivatives, Gross liability	0
Futures \| Derivatives not designated as accounting hedging instruments \| Other assets
Derivatives, Fair Value
Total asset derivatives, Notional amount	$ 0	$ 0
Total asset derivatives, Number of contracts \| contract	476	330
Total asset derivatives, Fair value, net	$ 0	$ 0
Asset derivatives, Gross asset	0	0
Asset derivatives, Gross liability	0	0
Futures \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount	$ 0
Total liability derivatives, Number of contracts \| contract	263
Derivative liabilities net amount on balance sheet	$ 0
Liability derivatives, Gross asset	0
Liability derivatives, Gross liability	0
Options \| Derivatives not designated as accounting hedging instruments \| Other investments
Derivatives, Fair Value
Total asset derivatives, Notional amount	$ 0	$ 0
Total asset derivatives, Number of contracts \| contract	2,981	3,440
Total asset derivatives, Fair value, net	$ 124,000,000	$ 21,000,000
Asset derivatives, Gross asset	124,000,000	21,000,000
Asset derivatives, Gross liability	0	0
Options \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount	$ 0
Total liability derivatives, Number of contracts \| contract	2,844
Derivative liabilities net amount on balance sheet	$ (60,000,000)
Liability derivatives, Gross asset	0
Liability derivatives, Gross liability	(60,000,000)
Futures \| Derivatives not designated as accounting hedging instruments \| Other assets
Derivatives, Fair Value
Total asset derivatives, Notional amount	$ 0	$ 0
Total asset derivatives, Number of contracts \| contract	27	26
Total asset derivatives, Fair value, net	$ 0	$ 0
Asset derivatives, Gross asset	0	0
Asset derivatives, Gross liability	0	0
Futures \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount	$ 0
Total liability derivatives, Number of contracts \| contract	1
Derivative liabilities net amount on balance sheet	$ 0
Liability derivatives, Gross asset	0
Liability derivatives, Gross liability	0
Total return swaps - fixed income \| Derivatives not designated as accounting hedging instruments \| Other investments
Derivatives, Fair Value
Total asset derivatives, Notional amount	7,000,000	7,000,000
Total asset derivatives, Fair value, net	0	0
Asset derivatives, Gross asset	0	0
Asset derivatives, Gross liability	0	0
Total return swaps - fixed income \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount	10,000,000
Derivative liabilities net amount on balance sheet	0
Liability derivatives, Gross asset	0
Liability derivatives, Gross liability	0
Total return swaps - equity index \| Derivatives not designated as accounting hedging instruments \| Other investments
Derivatives, Fair Value
Total asset derivatives, Notional amount		10,000,000
Total asset derivatives, Fair value, net		(1,000,000)
Asset derivatives, Gross asset		0
Asset derivatives, Gross liability		(1,000,000)
Total return swaps - equity index \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount	14,000,000
Derivative liabilities net amount on balance sheet	1,000,000
Liability derivatives, Gross asset	1,000,000
Liability derivatives, Gross liability	0
Foreign currency forwards \| Derivatives not designated as accounting hedging instruments \| Other investments
Derivatives, Fair Value
Total asset derivatives, Notional amount		240,000,000
Total asset derivatives, Fair value, net		8,000,000
Asset derivatives, Gross asset		8,000,000
Asset derivatives, Gross liability		0
Foreign currency forwards \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount	242,000,000
Derivative liabilities net amount on balance sheet	6,000,000
Liability derivatives, Gross asset	9,000,000
Liability derivatives, Gross liability	(3,000,000)
Credit default swaps - buying protection \| Derivatives not designated as accounting hedging instruments \| Other investments
Derivatives, Fair Value
Total asset derivatives, Notional amount	1,000,000	27,000,000
Total asset derivatives, Fair value, net	0	0
Asset derivatives, Gross asset	0	1,000,000
Asset derivatives, Gross liability	0	(1,000,000)
Credit default swaps - buying protection \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount	26,000,000
Derivative liabilities net amount on balance sheet	(2,000,000)
Liability derivatives, Gross asset	0
Liability derivatives, Gross liability	(2,000,000)
Credit default swaps – selling protection \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount	5,000,000	1,000,000
Derivative liabilities net amount on balance sheet	0	0
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	0	0
Other \| Derivatives designated as accounting hedging instruments \| Other assets
Derivatives, Fair Value
Total asset derivatives, Notional amount	2,000,000
Total asset derivatives, Fair value, net	0
Asset derivatives, Gross asset	0
Asset derivatives, Gross liability	0
Other \| Derivatives not designated as accounting hedging instruments \| Other assets
Derivatives, Fair Value
Total asset derivatives, Notional amount		2,000,000
Total asset derivatives, Fair value, net		0
Asset derivatives, Gross asset		0
Asset derivatives, Gross liability		0
Options \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount		$ 0
Total liability derivatives, Number of contracts \| contract		3,266
Derivative liabilities net amount on balance sheet		$ (5,000,000)
Liability derivatives, Gross asset		0
Liability derivatives, Gross liability		(5,000,000)
Guaranteed accumulation benefits \| Derivatives not designated as accounting hedging instruments \| Contractholder funds
Derivatives, Fair Value
Total liability derivatives, Notional amount	161,000,000	169,000,000
Derivative liabilities net amount on balance sheet	(18,000,000)	(25,000,000)
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	(18,000,000)	(25,000,000)
Guaranteed withdrawal benefits \| Derivatives not designated as accounting hedging instruments \| Contractholder funds
Derivatives, Fair Value
Total liability derivatives, Notional amount	205,000,000	210,000,000
Derivative liabilities net amount on balance sheet	(14,000,000)	(14,000,000)
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	(14,000,000)	(14,000,000)
Equity-indexed and forward starting options in life and annuity product contracts \| Derivatives not designated as accounting hedging instruments \| Contractholder funds
Derivatives, Fair Value
Total liability derivatives, Notional amount	1,678,000,000	1,696,000,000
Derivative liabilities net amount on balance sheet	(395,000,000)	(184,000,000)
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	$ (395,000,000)	$ (184,000,000)
Fair Value Hedging \| Derivatives designated as accounting hedging instruments
Derivatives, Fair Value
Total derivatives, Number of contracts \| contract	1	0	0
Cash Flow Hedging \| Derivatives designated as accounting hedging instruments
Derivatives, Fair Value
Total derivatives, Number of contracts \| contract	0	1	1

Quarterly Results (unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results (unaudited)



($ in millions)	First Quarter				Second Quarter				Third Quarter				Fourth Quarter
	2019		2018		2019		2018		2019		2018		2019		2018
Revenues	$	816	$	736	$	814	$	783	$	742	$	787	$	781	$	541
Net income (loss)	164		90		157		134		80		193		129		(52		)

Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Non-cash modifications of certain mortgage loans, fixed income securities, limited partnerships and other investments, as well as mergers completed with equity securities	$ 67	$ 43	$ 51
Redemption, related party debt	215	0	0
Notes due to related parties	214	140
Liabilities for collateral received reported in other liabilities and accrued expenses	522	517	539
Obligations to return cash collateral for over-the-counter ("OTC") derivatives reported in other liabilities and accrued expenses or other investments	8	8	3
Net change in proceeds managed
Net change in fixed income securities	28	94	149
Net change in short-term investments	(33)	(77)	(142)
Operating cash flow (used) provided	(5)	17	7
Net change in cash	0	0	1
Net change in proceeds managed	(5)	17	8
Net change in liabilities
Liabilities for collateral, beginning of year	(525)	(542)	(550)
Liabilities for collateral, end of year	(530)	(525)	(542)
Operating cash flow provided (used)	$ 5	$ (17)	(8)
Other
Debt Instrument [Line Items]
Decrease in notes receivable, related parties			325
ALIC Re \| Affiliate
Debt Instrument [Line Items]
Redemption, related party debt			$ 325

Fair Value of Assets and Liabilities - Rollforward of Level 3 assets and liabilities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	$ 321	$ 467	$ 514
Total gains (losses) included in: net income	14	14	18
Total gains (losses) included in: OCI	3	(6)	9
Transfers into Level 3	54	25	18
Transfers out of Level 3	(69)	(138)	(67)
Purchases	82	64	84
Sales	(60)	(39)	(42)
Issues	0	0	0
Settlements	(21)	(66)	(67)
Balance at end of period	324	321	467
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	(223)	(284)	(289)
Total gains (losses) included in: net income	(52)	57	1
Total gains (losses) included in: OCI	0	0	0
Transfers into Level 3	(154)	0	0
Transfers out of Level 3	0	0	0
Purchases	0	0	0
Sales	0	0	0
Issues	(10)	(2)	(2)
Settlements	12	6	6
Balance at end of period	(427)	(223)	(284)
Fair value assets and liabilities measured on recurring basis, gain (loss) included in earnings
Total realized and unrealized gains (losses) included in net income, recurring Level 3 assets and liabilities	(38)	71	19
Other investments: Free-standing derivatives		1	1
Realized capital gains and losses
Rollforward of Level 3 assets held at fair value on a recurring basis
Total gains (losses) included in: net income	16	14	9
Net investment income
Rollforward of Level 3 assets held at fair value on a recurring basis
Total gains (losses) included in: net income	(2)	0	10
Interest credited to contractholder funds
Rollforward of Level 3 assets held at fair value on a recurring basis
Total gains (losses) included in: net income	(59)	62	(9)
Contract benefits
Rollforward of Level 3 assets held at fair value on a recurring basis
Total gains (losses) included in: net income	7	(5)	9
Municipal
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	39	57	59
Total gains (losses) included in: net income	0	0	0
Total gains (losses) included in: OCI	4	(2)	2
Transfers into Level 3	0	0	0
Transfers out of Level 3	0	(16)	0
Purchases	0	2	0
Sales	(1)	(2)	(2)
Issues	0	0	0
Settlements	(2)	0	(2)
Balance at end of period	40	39	57
Corporate - public
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	33	49	47
Total gains (losses) included in: net income	0	0	1
Total gains (losses) included in: OCI	0	(2)	0
Transfers into Level 3	5	3	3
Transfers out of Level 3	(38)	(3)	(15)
Purchases	32	0	17
Sales	(2)	(11)	0
Issues	0	0	0
Settlements	(5)	(3)	(4)
Balance at end of period	25	33	49
Corporate - privately placed
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	97	220	264
Total gains (losses) included in: net income	(1)	(2)	7
Total gains (losses) included in: OCI	1	(2)	(2)
Transfers into Level 3	43	10	11
Transfers out of Level 3	(1)	(101)	(16)
Purchases	4	12	20
Sales	(13)	0	(30)
Issues	0	0	0
Settlements	(8)	(40)	(34)
Balance at end of period	122	97	220
Asset-backed securities
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	22	50	69
Total gains (losses) included in: net income	1	0	0
Total gains (losses) included in: OCI	(1)	0	6
Transfers into Level 3	0	12	4
Transfers out of Level 3	(30)	(18)	(36)
Purchases	36	20	34
Sales	(6)	(19)	0
Issues	0	0	0
Settlements	(6)	(23)	(27)
Balance at end of period	16	22	50
MBS
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	0
Total gains (losses) included in: net income	0
Total gains (losses) included in: OCI	(1)
Transfers into Level 3	6
Transfers out of Level 3	0
Purchases	0
Sales	0
Issues	0
Settlements	0
Balance at end of period	5	0
Fixed income securities
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	191	376	439
Total gains (losses) included in: net income	0	(2)	8
Total gains (losses) included in: OCI	3	(6)	6
Transfers into Level 3	54	25	18
Transfers out of Level 3	(69)	(138)	(67)
Purchases	72	34	71
Sales	(22)	(32)	(32)
Issues	0	0	0
Settlements	(21)	(66)	(67)
Balance at end of period	208	191	376
Equity securities
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	129	90	76
Total gains (losses) included in: net income	15	16	8
Total gains (losses) included in: OCI	0	0	3
Transfers into Level 3	0	0	0
Transfers out of Level 3	0	0	0
Purchases	10	30	13
Sales	(38)	(7)	(10)
Issues	0	0	0
Settlements	0	0	0
Balance at end of period	116	129	90
Free-standing derivatives, net
Rollforward of Level 3 assets held at fair value on a recurring basis
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
Rollforward of Level 3 assets held at fair value on a recurring basis
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
Contractholder funds: Derivatives embedded in life and annuity contracts
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	(223)	(284)	(289)
Total gains (losses) included in: net income	(52)	57	1
Total gains (losses) included in: OCI	0	0	0
Transfers into Level 3	(154)	0	0
Transfers out of Level 3	0	0	0
Purchases	0	0	0
Sales	0	0	0
Issues	(10)	(2)	(2)
Settlements	12	6	6
Balance at end of period	$ (427)	$ (223)	$ (284)

Other Comprehensive Income

12 Months Ended

Dec. 31, 2019

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

Other Comprehensive Income

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



($ in millions)	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	$	878		$	(184	)	$	694		$	(483	)	$	101	$	(382	)	$	51	$	(18	)	$	33
Less: reclassification adjustment of realized capital gains and losses	19			(4		)	15			(35		)	7		(28		)	43		(15		)	28
Unrealized net capital gains and losses	859			(180		)	679			(448		)	94		(354		)	8		(3		)	5
Unrealized foreign currency translation adjustments	(22		)	5			(17		)	—			—		—			17		(6		)	11
Other comprehensive income (loss)	$	837		$	(175	)	$	662		$	(448	)	$	94	$	(354	)	$	25	$	(9	)	$	16

Investments - Net investment income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Net investment income
Investment income, before expense	$ 1,515	$ 1,688	$ 1,864
Investment expense	(104)	(103)	(87)
Net investment income	1,411	1,585	1,777
Fixed income securities
Net investment income
Investment income, before expense	963	991	1,058
Mortgage loans
Net investment income
Investment income, before expense	190	188	182
Equity securities
Net investment income
Investment income, before expense	29	39	48
Limited partnership interests
Net investment income
Investment income, before expense	175	327	457
Short-term investments
Net investment income
Investment income, before expense	31	21	9
Policy loans
Net investment income
Investment income, before expense	34	31	31
Other
Net investment income
Investment income, before expense	$ 93	$ 91	$ 79

Investments - Impairment and credit losses on fixed income securities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Investments [Abstract]
Net unrealized gains related to changes in valuation of fixed income securities subsequent to impairment measurement date	$ 92	$ 101
Other-than-temporary 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	(40)	(44)
Credit Losses on Fixed Income Securities
Beginning balance	(123)	(138)	$ (176)
Additional credit loss for securities previously other-than-temporarily impaired	(4)	(7)	(9)
Additional credit loss for securities not previously other-than-temporarily impaired	(1)	(1)	(8)
Reduction in credit loss for securities disposed or collected	25	22	54
Change in credit loss due to accretion of increase in cash flows	0	1	1
Ending balance	(103)	(123)	$ (138)
Municipal
Other-than-temporary 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	(6)	(4)
Corporate
Other-than-temporary 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	(1)
ABS
Other-than-temporary 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	(4)	(5)
MBS
Other-than-temporary 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	$ (30)	$ (34)

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	$ 31,753
Amount shown in the Balance Sheet	33,607
United States government, government agencies and authorities
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	848
Fair value	882
Amount shown in the Balance Sheet	882
States, municipalities and political subdivisions
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	1,483
Fair value	1,755
Amount shown in the Balance Sheet	1,755
Foreign government
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	142
Fair value	149
Amount shown in the Balance Sheet	149
Public utilities
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	3,072
Fair value	3,390
Amount shown in the Balance Sheet	3,390
All other corporate bonds
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	14,229
Fair value	15,051
Amount shown in the Balance Sheet	15,051
Asset-backed securities
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	316
Fair value	317
Amount shown in the Balance Sheet	317
MBS
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	127
Fair value	181
Amount shown in the Balance Sheet	181
Fixed income securities
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	20,217
Fair value	21,725
Amount shown in the Balance Sheet	21,725
Public utilities
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	20
Fair value	30
Amount shown in the Balance Sheet	30
Banks, trusts and insurance companies
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	111
Fair value	158
Amount shown in the Balance Sheet	158
Industrial, miscellaneous and all other
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	967
Fair value	1,252
Amount shown in the Balance Sheet	1,252
Nonredeemable preferred stocks
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	25
Fair value	29
Amount shown in the Balance Sheet	29
Equity securities
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	1,123
Fair value	1,469
Amount shown in the Balance Sheet	1,469
Mortgage loans on real estate
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	3,988
Fair value	4,176
Amount shown in the Balance Sheet	3,988
Real Estate Acquired in Satisfaction of Debt
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	0
Amount shown in the Balance Sheet	0
Real estate investment
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	292
Amount shown in the Balance Sheet	292
Policy loans
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	557
Amount shown in the Balance Sheet	557
Derivative instruments
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	124
Fair value	124
Amount shown in the Balance Sheet	124
Limited partnership interests
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	3,250
Amount shown in the Balance Sheet	3,250
Other long-term investments
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	1,011
Amount shown in the Balance Sheet	1,011
Short-term investments
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	1,191
Fair value	1,191
Amount shown in the Balance Sheet	$ 1,191

Investments - Unrealized net capital gains and losses (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Fair value
Fixed income securities	$ 21,725	$ 21,400
Short-term investments	1,191	810
Derivative instruments	0	0
Gross unrealized Gains
Fixed income securities	1,549	732
Short-term investments	0	0
Derivative instruments	0	0
Gross unrealized Losses
Fixed income securities	(41)	(389)
Short-term investments	0	0
Derivative instruments	0	0
Unrealized net gains (losses)
Fixed income securities	1,508	343
Short-term investments	0	0
Derivative instruments	0	0
EMA limited partnerships	(2)	0
Unrealized net capital gains and losses, pre-tax	1,506	343
Amounts recognized for:
Amounts recognized for:	(126)	0
DAC and DSI	(213)	(35)
Amounts recognized	(339)	(35)
Deferred income taxes	(245)	(65)
Total unrealized net capital gains and losses	$ 922	$ 243

Related Party Transactions - Agent Loan Sale and Securitization (Details) - Collateralized Loan Obligations - USD ($) $ in Millions	Dec. 31, 2019	Dec. 16, 2019	Dec. 31, 2018	Dec. 22, 2016
Related Party Transactions
Agent loans, fair value		$ 222		$ 419
Affiliate
Related Party Transactions
Agent loans, fair value	$ 641
Class B Deferrable Notes \| Class B Deferrable Notes \| Affiliate
Related Party Transactions
Agent loans, fair value	214		$ 140
Class C Deferrable Notes \| Class B Deferrable Notes \| Affiliate
Related Party Transactions
Agent loans, fair value	168		110
Subordinated Notes \| Class B Deferrable Notes \| Affiliate
Related Party Transactions
Agent loans, fair value	45		29
Notes Due March 9, 2037 \| Affiliate
Related Party Transactions
Agent loans, fair value	$ 74
Notes payable interest rate (as a percent)	3.16%
Notes Due March 9, 2037 \| Class A Notes \| Affiliate
Related Party Transactions
Agent loans, fair value	$ 214
Notes Due March 9, 2037 \| Class A Notes \| Allstate New Jersey Insurance Company \| Affiliate
Related Party Transactions
Agent loans, fair value	83
Notes Due March 9, 2037 \| Class A Notes \| American Heritage Life Insurance Company \| Affiliate
Related Party Transactions
Agent loans, fair value	59
Notes Due March 9, 2037 \| Class A Notes \| Allstate Assurance Company \| Affiliate
Related Party Transactions
Agent loans, fair value	33
Notes Due March 9, 2037 \| Class A Notes \| First Colonial Insurance Company \| Affiliate
Related Party Transactions
Agent loans, fair value	9
Notes Due March 9, 2037 \| Class A Notes \| Allstate Fire & Casualty Insurance Company \| Affiliate
Related Party Transactions
Agent loans, fair value	7
Notes Due March 9, 2037 \| Class A Notes \| Allstate Property and Casualty Insurance Company \| Affiliate
Related Party Transactions
Agent loans, fair value	6
Notes Due March 9, 2037 \| Class A Notes \| Allstate Indemnity Company \| Affiliate
Related Party Transactions
Agent loans, fair value	4
Notes Due March 9, 2037 \| Class A Notes \| Esurance Insurance Company \| Affiliate
Related Party Transactions
Agent loans, fair value	4
Notes Due March 9, 2037 \| Class A Notes \| North Light Specialty Insurance Company \| Affiliate
Related Party Transactions
Agent loans, fair value	3
Notes Due March 9, 2037 \| Class A Notes \| Allstate Vehicle and Property Insurance Company \| Affiliate
Related Party Transactions
Agent loans, fair value	2
Notes Due March 9, 2037 \| Class A Notes \| Allstate New Jersey Property and Casualty Insurance Company \| Affiliate
Related Party Transactions
Agent loans, fair value	2
Notes Due March 9, 2037 \| Class A Notes \| Esurance Property and Casualty Insurance Company \| Affiliate
Related Party Transactions
Agent loans, fair value	2
Notes Due March 10, 2034 \| Affiliate
Related Party Transactions
Agent loans, fair value	$ 140		$ 419
Notes payable interest rate (as a percent)	3.36%		3.25%
Notes Due March 10, 2034 \| Class A Notes \| Affiliate
Related Party Transactions
Agent loans, fair value			$ 140
Notes Due March 10, 2034 \| Class A Notes \| Allstate New Jersey Insurance Company \| Affiliate
Related Party Transactions
Agent loans, fair value			77
Notes Due March 10, 2034 \| Class A Notes \| American Heritage Life Insurance Company \| Affiliate
Related Party Transactions
Agent loans, fair value			37
Notes Due March 10, 2034 \| Class A Notes \| Allstate Assurance Company \| Affiliate
Related Party Transactions
Agent loans, fair value			19
Notes Due March 10, 2034 \| Class A Notes \| First Colonial Insurance Company \| Affiliate
Related Party Transactions
Agent loans, fair value			7
Notes Due March 10, 2034 \| Class A Notes \| Allstate Fire & Casualty Insurance Company \| Affiliate
Related Party Transactions
Agent loans, fair value			0
Notes Due March 10, 2034 \| Class A Notes \| Allstate Property and Casualty Insurance Company \| Affiliate
Related Party Transactions
Agent loans, fair value			0
Notes Due March 10, 2034 \| Class A Notes \| Allstate Indemnity Company \| Affiliate
Related Party Transactions
Agent loans, fair value			0
Notes Due March 10, 2034 \| Class A Notes \| Esurance Insurance Company \| Affiliate
Related Party Transactions
Agent loans, fair value			0
Notes Due March 10, 2034 \| Class A Notes \| North Light Specialty Insurance Company \| Affiliate
Related Party Transactions
Agent loans, fair value			0
Notes Due March 10, 2034 \| Class A Notes \| Allstate Vehicle and Property Insurance Company \| Affiliate
Related Party Transactions
Agent loans, fair value			0
Notes Due March 10, 2034 \| Class A Notes \| Allstate New Jersey Property and Casualty Insurance Company \| Affiliate
Related Party Transactions
Agent loans, fair value			0
Notes Due March 10, 2034 \| Class A Notes \| Esurance Property and Casualty Insurance Company \| Affiliate
Related Party Transactions
Agent loans, fair value			$ 0

Investments - Mortgage loans other (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Mortgage loans
Provision for Loan, Lease, and Other Losses	$ 0	$ 0	$ 1
Carrying value of non-impaired fixed rate and variable rate mortgage loans by debt service coverage ratio distribution
Total				$ 3,988	$ 3,995
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
Charge offs	0	0	(1)
Ending balance	3	3	3
Non-impaired mortgage loans
Carrying value of non-impaired fixed rate and variable rate mortgage loans by debt service coverage ratio distribution
Fixed rate mortgage loans				3,927	3,934
Variable rate mortgage loans				53	57
Total				3,980	3,991
Non-impaired mortgage loans \| Below 1.0
Carrying value of non-impaired fixed rate and variable rate mortgage loans by debt service coverage ratio distribution
Fixed rate mortgage loans				13	6
Variable rate mortgage loans				16	15
Total				29	21
Non-impaired mortgage loans \| 1.0 - 1.25
Carrying value of non-impaired fixed rate and variable rate mortgage loans by debt service coverage ratio distribution
Fixed rate mortgage loans				161	221
Variable rate mortgage loans				0	0
Total				161	221
Non-impaired mortgage loans \| 1.26 - 1.50
Carrying value of non-impaired fixed rate and variable rate mortgage loans by debt service coverage ratio distribution
Fixed rate mortgage loans				1,057	1,048
Variable rate mortgage loans				9	0
Total				1,066	1,048
Non-impaired mortgage loans \| Above 1.50
Carrying value of non-impaired fixed rate and variable rate mortgage loans by debt service coverage ratio distribution
Fixed rate mortgage loans				2,696	2,659
Variable rate mortgage loans				28	42
Total				$ 2,724	$ 2,701
Mortgage loans
Average carrying value and interest income recognized on impaired mortgage loans
Average balance impaired mortgage loans	$ 5	$ 4	$ 7

Derivative Financial Instruments and Off-balance sheet Financial Instruments - Counterparty credit exposure and other (Details) $ in Millions	Dec. 31, 2019 USD ($) counter-party	Dec. 31, 2018 USD ($) counter-party
Credit Derivatives
Cash and securities pledged as collateral by counterparties	$ 8
Securities pledged as collateral to counterparties	1
Securities pledged in the form of margin deposits	6
Collateral posted under MNAs for contracts containing credit-risk-contingent features	$ 1	$ 0
Number of counter-parties \| counter-party	5	4
Notional amount	$ 296	$ 306
Credit exposure	7	9
Exposure, net of collateral	0	1
Gross liability fair value of contracts containing credit-risk-contingent features	4	2
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(3)	(2)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	(1)	0
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$ 0	$ 0
A plus
Credit Derivatives
Number of counter-parties \| counter-party	5	3
Notional amount	$ 296	$ 283
Credit exposure	7	9
Exposure, net of collateral	$ 0	$ 1
A
Credit Derivatives
Number of counter-parties \| counter-party	0	1
Notional amount	$ 0	$ 23
Credit exposure	0	0
Exposure, net of collateral	$ 0	$ 0

Guarantees and Contingent Liabilities	12 Months Ended
Guarantees and Contingent Liabilities	Dec. 31, 2019
Guarantees [Abstract]
Guarantees and Contingent Liabilities	Guarantees and Contingent Liabilities 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 and the amount of the loss is reasonably estimable. 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 allocated by each state. As of both December 31, 2019 and 2018, the liability balance included in other liabilities and accrued expenses was $4 million. The related premium tax offsets included in other assets were $6 million and $7 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 LBL on April 1, 2014, the Company agreed to indemnify Resolution Life Holdings, Inc. in connection with certain representations, warranties and covenants of the Company, and certain liabilities specifically excluded from the transaction, subject to specific contractual limitations regarding the Company’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 and regulatory actions. From time to time, regulatory authorities or legislative bodies seek to 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 Securities and Exchange Commission, the Financial Industry Regulatory Authority, 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.

Reinsurance - Premiums and contract charges (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Effects of reinsurance on revenue
Direct premiums and contract charges	$ 748	$ 743	$ 734
Total premiums and contract charges	1,359	1,399	1,393
Direct life and annuity contract benefits	1,038	1,062	1,003
Contract benefits, net of reinsurance	1,481	1,446	1,430
Effects of reinsurance on cost and expenses
Direct interest credited to contractholder funds	463	533	546
Ceded interest credited to contractholder funds	(40)	(44)	(46)
Interest credited to contractholder funds	585	601	639
Reinsurance recoverables
Reinsurance recoverable	$ 2,490	$ 2,605
A- \| Reinsurer Concentration Risk \| Allstate Financial
Reinsurance recoverables
Concentration risk, percentage	78.00%	78.00%
Annuities
Reinsurance recoverables
Reinsurance recoverable	$ 1,293	$ 1,369
Life insurance
Reinsurance recoverables
Reinsurance recoverable	1,145	1,183
Other
Reinsurance recoverables
Reinsurance recoverable	52	53
Affiliate
Effects of reinsurance on revenue
Assumed premiums and contract charges	231	241	227
Ceded premiums and contract charges	(49)	(51)	(52)
Assumed life and annuity contract benefits	137	149	130
Life and annuity contract benefits, reinsurance ceded	(35)	(35)	(33)
Effects of reinsurance on cost and expenses
Assumed interest credited to contractholder funds	8	8	8
Ceded interest credited to contractholder funds	(20)	(20)	(21)
Reinsurance recoverables
Reinsurance recoverable	408	420
Non-affiliate
Effects of reinsurance on revenue
Assumed premiums and contract charges	699	741	772
Ceded premiums and contract charges	(270)	(275)	(288)
Assumed life and annuity contract benefits	493	484	505
Life and annuity contract benefits, reinsurance ceded	(152)	(214)	(175)
Effects of reinsurance on cost and expenses
Assumed interest credited to contractholder funds	154	104	131
Ceded interest credited to contractholder funds	(20)	(24)	(25)
Prudential
Effects of reinsurance on revenue
Ceded premiums and contract charges	(65)	(72)	(76)
Life and annuity contract benefits, reinsurance ceded	(4)	(87)	(7)
Effects of reinsurance on cost and expenses
Ceded interest credited to contractholder funds	(19)	(20)	$ (20)
Reinsurance recoverables
Reinsurance recoverable	$ 1,290	$ 1,360

Label	Element	Value
AOCI Attributable to Parent [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 0
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (238,000,000)

Investments - Fair Values (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Amortized cost, gross unrealized gains and losses and fair value for fixed income securities
Amortized cost	$ 20,217	$ 21,057
Gross unrealized, gains	1,549	732
Gross unrealized, losses	(41)	(389)
Fair value	21,725	21,400
U.S. government and agencies
Amortized cost, gross unrealized gains and losses and fair value for fixed income securities
Amortized cost	848	740
Gross unrealized, gains	34	33
Gross unrealized, losses	0	0
Fair value	882	773
Municipal
Amortized cost, gross unrealized gains and losses and fair value for fixed income securities
Amortized cost	1,483	1,997
Gross unrealized, gains	279	202
Gross unrealized, losses	(7)	(4)
Fair value	1,755	2,195
Corporate
Amortized cost, gross unrealized gains and losses and fair value for fixed income securities
Amortized cost	17,301	17,534
Gross unrealized, gains	1,170	434
Gross unrealized, losses	(30)	(381)
Fair value	18,441	17,587
Foreign government
Amortized cost, gross unrealized gains and losses and fair value for fixed income securities
Amortized cost	142	170
Gross unrealized, gains	7	9
Gross unrealized, losses	0	0
Fair value	149	179
ABS
Amortized cost, gross unrealized gains and losses and fair value for fixed income securities
Amortized cost	316	429
Gross unrealized, gains	4	3
Gross unrealized, losses	(3)	(3)
Fair value	317	429
MBS
Amortized cost, gross unrealized gains and losses and fair value for fixed income securities
Amortized cost	127	187
Gross unrealized, gains	55	51
Gross unrealized, losses	(1)	(1)
Fair value	$ 181	$ 237

Income Taxes - Components of the deferred income tax assets and liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Deferred reinsurance gain	$ 6	$ 7
Other assets	1	1
Total deferred tax assets	7	8
Life and annuity reserves	(253)	(223)
Unrealized net capital gains	(245)	(65)
Investments	(185)	(131)
DAC	(169)	(201)
Other liabilities	(49)	(51)
Total deferred tax liabilities	(901)	(671)
Net deferred tax liability	$ (894)	$ (663)

Quarterly Results (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
Quarterly Results (Details) - USD ($) $ in Millions	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
Quarterly Financial Information Disclosure [Abstract]
Revenues	$ 781	$ 742	$ 814	$ 816	$ 541	$ 787	$ 783	$ 736	$ 3,153	$ 2,847	$ 3,259
Net income	$ 129	$ 80	$ 157	$ 164	$ (52)	$ 193	$ 134	$ 90	$ 530	$ 365	$ 996

- Definition

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

+ References + Details

Fair Value of Assets and Liabilities

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities

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

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

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


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


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


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

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

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

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

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

(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. ABS and 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, 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.

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.


•	Other investments: Certain OTC derivatives, such as interest rate caps and certain credit default swaps, 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 $201 million in these limited partnership interests.

The following table summarizes the Company’s 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			Balance as of December 31, 2019
Assets
Fixed income securities:
U.S. government and agencies	$	590		$	292		$	—					$	882
Municipal	—			1,715			40						1,755
Corporate - public	—			12,777			25						12,802
Corporate - privately placed	—			5,517			122						5,639
Foreign government	—			149			—						149
ABS	—			301			16						317
MBS	—			176			5						181
Total fixed income securities	590			20,927			208						21,725
Equity securities	1,340			13			116						1,469
Short-term investments	493			698			—						1,191
Other investments: Free-standing derivatives	—			134			—			$	(10	)	124
Separate account assets	3,009			—			—						3,009
Total recurring basis assets	$	5,432		$	21,772		$	324		$	(10	)	$	27,518
% of total assets at fair value	19.7		%	79.1		%	1.2		%	—		%	100		%

Investments reported at NAV													773
Total													$	28,291

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(427	)				$	(427	)
Other liabilities: Free-standing derivatives	—			(65		)	—			$	3		(62		)
Total recurring basis liabilities	$	—		$	(65	)	$	(427	)	$	3		$	(489	)
% of total liabilities at fair value	—		%	13.3		%	87.3		%	(0.6		)%	100		%

The following table summarizes the Company’s 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			Balance as of December 31, 2018
Assets
Fixed income securities:
U.S. government and agencies	$	493		$	280		$	—					$	773
Municipal	—			2,156			39						2,195
Corporate - public	—			11,891			33						11,924
Corporate - privately placed	—			5,566			97						5,663
Foreign government	—			179			—						179
ABS	—			407			22						429
MBS	—			237			—						237
Total fixed income securities	493			20,716			191						21,400
Equity securities	1,182			14			129						1,325
Short-term investments	443			367			—						810
Other investments: Free-standing derivatives	—			30			1			$	(8	)	23
Separate account assets	2,783			—			—						2,783
Total recurring basis assets	$	4,901		$	21,127		$	321		$	(8	)	$	26,341
% of total assets at fair value	18.6		%	80.2		%	1.2		%	—		%	100		%

Investments reported at NAV													787
Total													$	27,128

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(223	)				$	(223	)
Other liabilities: Free-standing derivatives	—			(7		)	—			$	2		(5		)
Total recurring basis liabilities	$	—		$	(7	)	$	(223	)	$	2		$	(228	)
% of total liabilities at fair value	—		%	3.1		%	97.8		%	(0.9		)%	100		%

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



($ in millions)	Fair value			Valuation technique	Unobservable input	Range	Weighted average
December 31, 2019
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(395	)	Stochastic cash flow model	Projected option cost	1.0 - 4.2%	2.57	%
December 31, 2018
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(184	)	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 $208 million and $191 million, respectively, and include $38 million and $80 million, respectively, of securities valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable. 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.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value during the year ended December 31, 2019.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2018			Net income			OCI			Transfers into Level 3			Transfers out of Level 3			Purchases		Sales			Issues			Settlements			Balance as of December 31, 2019
Assets
Fixed income securities:
Municipal	$	39		$	—		$	4		$	—		$	—		$	—	$	(1	)	$	—		$	(2	)	$	40
Corporate - public	33			—			—			5			(38		)	32		(2		)	—			(5		)	25
Corporate - privately placed	97			(1		)	1			43			(1		)	4		(13		)	—			(8		)	122
ABS	22			1			(1		)	—			(30		)	36		(6		)	—			(6		)	16
MBS	—			—			(1		)	6			—			—		—			—			—			5
Total fixed income securities	191			—			3			54			(69		)	72		(22		)	—			(21		)	208
Equity securities	129			15			—			—			—			10		(38		)	—			—			116
Free-standing derivatives, net	1			(1		)	—			—			—			—		—			—			—			—
Total recurring Level 3 assets	$	321		$	14		$	3		$	54		$	(69	)	$	82	$	(60	)	$	—		$	(21	)	$	324
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(223	)	$	(52	)	$	—		$	(154	)	$	—		$	—	$	—		$	(10	)	$	12		$	(427	)
Total recurring Level 3 liabilities	$	(223	)	$	(52	)	$	—		$	(154	)	$	—		$	—	$	—		$	(10	)	$	12		$	(427	)

The following table presents the 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		Contract benefits		Interest credited to contractholder funds			Total
Components of net income	$	(2	)	$	16	$	7	$	(59	)	$	(38	)

The following table presents the rollforward of Level 3 assets and liabilities held at fair value during the year ended December 31, 2018.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2017			Net income			OCI			Transfers into Level 3		Transfers out of Level 3			Purchases		Sales			Issues			Settlements			Balance as of December 31, 2018
Assets
Fixed income securities:
Municipal	$	57		$	—		$	(2	)	$	—	$	(16	)	$	2	$	(2	)	$	—		$	—		$	39
Corporate - public	49			—			(2		)	3		(3		)	—		(11		)	—			(3		)	33
Corporate - privately placed	220			(2		)	(2		)	10		(101		)	12		—			—			(40		)	97
ABS	50			—			—			12		(18		)	20		(19		)	—			(23		)	22
Total fixed income securities	376			(2		)	(6		)	25		(138		)	34		(32		)	—			(66		)	191
Equity securities	90			16			—			—		—			30		(7		)	—			—			129
Free-standing derivatives, net	1			—			—			—		—			—		—			—			—			1			⁽¹	⁾
Total recurring Level 3 assets	$	467		$	14		$	(6	)	$	25	$	(138	)	$	64	$	(39	)	$	—		$	(66	)	$	321
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(284	)	$	57		$	—		$	—	$	—		$	—	$	—		$	(2	)	$	6		$	(223	)
Total recurring Level 3 liabilities	$	(284	)	$	57		$	—		$	—	$	—		$	—	$	—		$	(2	)	$	6		$	(223	)

____________________


⁽¹⁾	Comprises $1 million of assets.

The following table presents the 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		Contract benefits			Interest credited to contractholder funds		Total
Components of net income	$	—	$	14	$	(5	)	$	62	$	71

The following table presents the rollforward of Level 3 assets and liabilities held at fair value during the year ended December 31, 2017.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2016			Net income			OCI			Transfers into Level 3		Transfers out of Level 3			Purchases		Sales			Issues			Settlements			Balance as of December 31, 2017
Assets
Fixed income securities:
Municipal	$	59		$	—		$	2		$	—	$	—		$	—	$	(2	)	$	—		$	(2	)	$	57
Corporate - public	47			1			—			3		(15		)	17		—			—			(4		)	49
Corporate - privately placed	264			7			(2		)	11		(16		)	20		(30		)	—			(34		)	220
ABS	69			—			6			4		(36		)	34		—			—			(27		)	50
Total fixed income securities	439			8			6			18		(67		)	71		(32		)	—			(67		)	376
Equity securities	76			8			3			—		—			13		(10		)	—			—			90
Free-standing derivatives, net	(2		)	3			—			—		—			—		—			—			—			1			⁽¹	⁾
Other assets	1			(1		)	—			—		—			—		—			—			—			—
Total recurring Level 3 assets	$	514		$	18		$	9		$	18	$	(67	)	$	84	$	(42	)	$	—		$	(67	)	$	467
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(289	)	$	1		$	—		$	—	$	—		$	—	$	—		$	(2	)	$	6		$	(284	)
Total recurring Level 3 liabilities	$	(289	)	$	1		$	—		$	—	$	—		$	—	$	—		$	(2	)	$	6		$	(284	)

____________________


⁽¹⁾	Comprises $1 million of assets.

The following table presents the 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		Contract benefits		Interest credited to contractholder funds			Total
Components of net income	$	10	$	9	$	9	$	(9	)	$	19

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.

The table below provides 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		$	—		$	—
Corporate	—			—			1
Total fixed income securities	1			—			1
Equity securities	2			16			9
Free-standing derivatives, net	(1		)	—			—
Other assets	—			—			(1		)
Total recurring Level 3 assets	$	2		$	16		$	9

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(52	)	$	57		$	1
Total recurring Level 3 liabilities	$	(52	)	$	57		$	1
Total included in net income	$	(50	)	$	73		$	10

Components of net income
Net investment income	$	(2	)	$	—		$	10
Realized capital gains and losses	4			16			—
Contract benefits	7			(5		)	9
Interest credited to contractholder funds	(59		)	62			(9		)
Total included in net income	$	(50	)	$	73		$	10

Presented below are the 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	$	3,988	$	4,159	$	3,995	$	4,028
Bank loans	Level 3	344		337		422		408
Agent loans	Level 3	666		664		620		617

Financial liabilities
Contractholder funds on investment contracts	Level 3	$	8,403	$	9,123	$	9,213	$	9,629
Liability for collateral	Level 2	530		530		525		525
Notes due to related parties	Level 3	214		215		140		138

- 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

Income Taxes - Components of income tax expense (benefit) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Current	$ 76	$ 116	$ 104
Deferred	52	(99)	(382)
Total income tax expense (benefit)	$ 128	$ 17	$ (278)

Reserve for Life-Contingent Contract Benefits and Contractholder Funds - Liabilities for guarantees narrative (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Liabilities for guarantees:
Liability for guarantees	$ 418	$ 443	$ 369
Variable annuities \| In the event of death
Liabilities for guarantees:
Liability for guarantees	78	109	85
Variable annuities \| Liability for guarantees related to income benefits
Liabilities for guarantees:
Liability for guarantees	21	36	26
Variable annuities \| Guaranteed accumulation benefits
Liabilities for guarantees:
Liability for guarantees	18	25	22
Variable annuities \| For cumulative periodic withdrawals
Liabilities for guarantees:
Liability for guarantees	14	14	12
Variable annuities \| Other guarantees
Liabilities for guarantees:
Liability for guarantees	$ 287	$ 259	$ 224

Statutory Financial Information and Dividend Limitations	12 Months Ended
	Dec. 31, 2019
Statutory Financial Information and Dividend Limitations
Statutory Financial Information and Dividend Limitations	Statutory Financial Information and Dividend Limitations ALIC and its 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 of ALIC and its insurance subsidiaries was $363 million, $410 million and $279 million in 2019, 2018 and 2017, respectively. Statutory capital and surplus was $3.81 billion and $3.47 billion as of December 31, 2019 and 2018, respectively. Dividend Limitations The ability of ALIC to pay dividends is dependent on business conditions, income, cash requirements and other relevant factors. The payment of shareholder dividends by ALIC to 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. The Company paid dividends of $75 million in 2019. The maximum amount of dividends ALIC will be able to pay without prior IL DOI approval at a given point in time during 2020 is $487 million, 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 ALIC totaled $648 million as of December 31, 2019, and cannot result in capital and surplus being less than the minimum amount required by law. ALIC may receive dividends from time to time from its insurance subsidiaries. The ability of these insurance subsidiaries to pay dividends is generally dependent on business conditions, income, cash requirements, and other relevant factors. The maximum amount of dividends insurance subsidiaries can pay to ALIC without prior DOI approval at any given point during 2020 is $61 million. ALIC did not receive dividends from its insurance subsidiaries during 2019 or 2018. 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 ALIC were $4.30 billion and $644 million, respectively, as of December 31, 2019. ALIC’s insurance subsidiaries are included as a component of ALIC’s total statutory capital and surplus. Intercompany transactions Notification and approval of intercompany lending activities is also required by the IL DOI when ALIC does not have unassigned surplus and for transactions that exceed a level that is based on a formula using statutory admitted assets and statutory surplus.

- Definition

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

+ References + Details

(Details)	12 Months Ended
(Details)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Statutory Accounting Practices [Line Items]
Statutory net income (loss)	$ 363,000,000	$ 410,000,000	$ 279,000,000
Statutory capital and surplus	3,810,000,000	3,470,000,000
Dividends paid	75,000,000	250,000,000	$ 600,000,000
Maximum amount of dividends ALIC able to pay without prior IL DOI approval	487,000,000
Deficit position used to determine payment of dividends	$ 648,000,000
Multiplier of authorized control level RBC to determine action level RBC	2
Statutory accounting practices, statutory capital and surplus, adjusted balance	$ 4,300,000,000
Authorized control level RBC	644,000,000
Subsidiaries \| Class B Deferrable Notes
Statutory Accounting Practices [Line Items]
Dividends paid	0	$ 0
Maximum amount of dividends ALIC able to pay without prior IL DOI approval	$ 61,000,000

Derivative Financial Instruments and Off-balance sheet Financial Instruments

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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.

The Company utilizes several derivative strategies to manage risk. Asset-liability management is a risk management strategy that is principally employed to balance the respective interest-rate sensitivities of the Company’s 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 Company’s fixed income portfolio. Futures and options are used for hedging the equity exposure contained in the Company’s 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 and Comprehensive Income. The Company designates certain of its foreign currency swap contracts as cash flow hedges when the hedging instrument is highly effective in offsetting the exposure of variations in cash flows for the hedged risk that could affect net income. Amounts are reclassified to net investment income or realized capital gains and losses as the hedged item affects net income.

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

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

For 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 and had no foreign currency contracts designated as fair value hedges during 2019, 2018 and 2017.

Cash flow hedges The Company had no derivatives designated as cash flow hedges during 2019 and one foreign currency contract designated as a cash flow hedge during 2018 and 2017.

The following table provides a summary of the volume and fair value positions of derivative instruments as well as their reporting location in the Consolidated Statement of Financial Position as of December 31, 2019.



($ in millions, except number of contracts)		Volume ⁽¹⁾
	Balance sheet location	Notional amount		Number of contracts	Fair value, net			Gross asset		Gross liability
Asset derivatives
Derivatives designated as fair value accounting hedging instruments
Other	Other assets	$	2	n/a	$	—		$	—	$	—
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Futures	Other assets	—		476	—			—		—
Equity and index contracts
Options	Other investments	—		2,981	124			124		—
Futures	Other assets	—		27	—			—		—
Total return index contracts
Total return swap agreements - fixed income	Other investments	7		n/a	—			—		—
Credit default contracts
Credit default swaps - buying protection	Other investments	1		n/a	—			—		—
Subtotal		8		3,484	124			124		—
Total asset derivatives		$	10	3,484	$	124		$	124	$	—

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	—		263	—			—		—
Equity and index contracts
Options	Other liabilities & accrued expenses	—		2,844	(60		)	—		(60		)
Futures	Other liabilities & accrued expenses	—		1	—			—		—
Total return index contracts
Total return swap agreements - fixed income	Other liabilities & accrued expenses	10		n/a	—			—		—
Total return swap agreements - equity	Other liabilities & accrued expenses	14		n/a	1			1		—
Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	242		n/a	6			9		(3		)
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	1,678		n/a	(395		)	—		(395		)
Credit default contracts
Credit default swaps - buying protection	Other liabilities & accrued expenses	26		n/a	(2		)	—		(2		)
Credit default swaps - selling protection	Other liabilities & accrued expenses	5		n/a	—			—		—
Total liability derivatives		2,375		3,108	(482		)	$	10	$	(492	)
Total derivatives		$	2,385	6,592	$	(358	)

^{_________________________________________}

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



($ in millions, except number of contracts)		Volume
	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	—		330	—			—		—
Equity and index contracts
Options	Other investments	—		3,440	21			21		—
Futures	Other assets	—		26	—			—		—
Total return index contracts
Total return swap agreements - fixed income	Other investments	7		n/a	—			—		—
Total return swap agreements - equity index	Other investments	10		n/a	(1		)	—		(1		)
Foreign currency contracts
Foreign currency forwards	Other investments	240		n/a	8			8		—
Credit default contracts
Credit default swaps - buying protection	Other investments	27		n/a	—			1		(1		)
Other contracts
Other	Other assets	2		n/a	—			—		—
Total asset derivatives		$	292	3,796	$	28		$	30	$	(2	)

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	$	—
Equity and index contracts
Options and futures	Other liabilities & accrued expenses	—		3,266	(5		)	—		(5		)
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	1,696		n/a	(184		)	—		(184		)
Credit default contracts
Credit default swaps – selling protection	Other liabilities & accrued expenses	1		n/a	—			—		—
Total liability derivatives		2,107		3,266	(227		)	$	1	$	(228	)
Total derivatives		$	2,399	7,062	$	(199	)

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



($ in millions)				Offsets
	Gross amount			Counter- party netting			Cash collateral (received) pledged			Net amount on balance sheet			Securities collateral (received) pledged		Net amount
December 31, 2019
Asset derivatives	$	10		$	(10	)	$	—		$	—		$	—	$	—
Liability derivatives	(5		)	10			(7		)	(2		)	—		(2		)

December 31, 2018
Asset derivatives	$	10		$	(3	)	$	(5	)	$	2		$	—	$	2
Liability derivatives	(2		)	3			(1		)	—			—		—

The following table provides a summary of the impacts of the Company’s foreign currency contracts in cash flow hedging relationships for the years ended December 31.



($ in millions)	2019		2018		2017
Gain (loss) recognized in OCI on derivatives during the period	$	—	$	1	$	(2	)
Gain recognized in OCI on derivatives during the term of the hedging relationship	—		—		2
Gain reclassified from AOCI into income (net investment income)	—		—		1
Gain reclassified from AOCI into income (realized capital gains and losses)	—		3		—

The following tables present gains and losses from valuation and settlements reported on derivatives not designated as accounting hedging instruments in the Consolidated Statements of Operations and Comprehensive Income.



($ in millions)	Realized capital gains and losses			Contract benefits			Interest credited to contractholder funds			Total gain (loss) recognized in net income on derivatives
2019
Equity and index contracts	$	5		$	—		$	58		$	63
Embedded derivative financial instruments	—			7			(57		)	(50		)
Foreign currency contracts	3			—			—			3
Credit default contracts	(1		)	—			—			(1		)
Total return swaps - fixed income	1			—			—			1
Total return swaps - equity index	3			—			—			3
Total	$	11		$	7		$	1		$	19

2018
Interest rate contracts	$	1		$	—		$	—		$	1
Equity and index contracts	(4		)	—			(23		)	(27		)
Embedded derivative financial instruments	—			(5		)	66			61
Foreign currency contracts	12			—			—			12
Total return swaps - fixed income	(1		)	—			—			(1		)
Total return swaps - equity index	(1		)	—			—			(1		)
Total	$	7		$	(5	)	$	43		$	45

2017
Equity and index contracts	$	(4	)	$	—		$	45		$	41
Embedded derivative financial instruments	—			9			(5		)	4
Foreign currency contracts	(14		)	—			—			(14		)
Credit default contracts	2			—			—			2
Total	$	(16	)	$	9		$	40		$	33

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 $8 million in collateral to the Company, and the Company pledged $1 million in cash and securities to counterparties 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.

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 $6 million in the form of margin deposits.

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



($ in millions)	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+	5	$	296	$	7	$	—	3	$	283	$	9	$	1
A	—	—		—		—		1	23		—		—
Total	5	$	296	$	7	$	—	4	$	306	$	9	$	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.

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	$	4		$	2
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(3		)	(2		)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	(1		)	—
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$	—		$	—

Credit derivatives - selling protection

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

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



($ in millions)	Notional amount
	AA		A		BBB		BB and lower		Total		Fair value
December 31, 2019
Single name
Corporate debt	$	—	$	—	$	—	$	5	$	5	$	—
Total	$	—	$	—	$	—	$	5	$	5	$	—

December 31, 2018
Single name
Corporate debt	$	—	$	—	$	—	$	1	$	1	$	—
Total	$	—	$	—	$	—	$	1	$	1	$	—

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

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

Off-balance sheet financial instruments

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



($ in millions)	2019		2018
Commitments to invest in limited partnership interests	$	1,063	$	1,195
Private placement commitments	16		7
Other loan commitments	118		176

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.

Reserve for Life-Contingent Contract Benefits and Contractholder Funds - Assumptions generally used in calculating the reserve for life-contingent (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Contractholder funds
Total contractholder funds	$ 16,711,000,000	$ 17,470,000,000	$ 18,592,000,000	$ 19,470,000,000
Key contract provisions relating to contractholder funds:
Reserve for life-contingent contract benefits with respect to deficiency	126,000,000	0
Interest-sensitive life insurance
Contractholder funds
Total contractholder funds	$ 7,442,000,000	7,369,000,000
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
Contractholder funds
Total contractholder funds	$ 8,811,000,000	9,645,000,000
Key contract provisions relating to contractholder funds:
Percent of fixed annuities subject to market value adjustment for discretionary withdrawals	12.00%
Fixed annuities \| Maximum
Key contract provisions relating to contractholder funds:
Period for withdrawal or surrender charges	10 years
Immediate fixed annuities \| Minimum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	0.50%
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
Key contract provisions relating to contractholder funds:
Period for withdrawal or surrender charges	20 years
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
Contractholder funds
Total contractholder funds	$ 458,000,000	$ 456,000,000
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%

Investments - Other-than-temporary impairment losses (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	$ (24)	$ (7)	$ (46)
OTTI losses reclassified to (from) other comprehensive income	3	(2)	1
Net OTTI losses recognized in earnings	(21)	(9)	(45)
Net OTTI losses recognized in earnings			(45)
Municipal
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	(2)	0	(1)
OTTI losses reclassified to (from) other comprehensive income	2	0	0
Net OTTI losses recognized in earnings	0	0
Net OTTI losses recognized in earnings			(1)
Corporate
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	(1)	(1)	(7)
OTTI losses reclassified to (from) other comprehensive income	(1)	0	3
Net OTTI losses recognized in earnings	(2)	(1)
Net OTTI losses recognized in earnings			(4)
ABS
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	(1)	0	(1)
OTTI losses reclassified to (from) other comprehensive income	0	(1)	(1)
Net OTTI losses recognized in earnings	(1)	(1)
Net OTTI losses recognized in earnings			(2)
MBS
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	(4)	(5)	(9)
OTTI losses reclassified to (from) other comprehensive income	2	(1)	(1)
Net OTTI losses recognized in earnings	(2)	(6)
Net OTTI losses recognized in earnings			(10)
Fixed income securities
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	(8)	(6)	(18)
OTTI losses reclassified to (from) other comprehensive income	3	(2)	1
Net OTTI losses recognized in earnings	(5)	(8)
Net OTTI losses recognized in earnings			(17)
Mortgage loans
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	0	0	(1)
OTTI losses reclassified to (from) other comprehensive income	0	0	0
Net OTTI losses recognized in earnings	0	0
Net OTTI losses recognized in earnings			(1)
Equity securities
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	0	0	(16)
OTTI losses reclassified to (from) other comprehensive income	0	0	0
Net OTTI losses recognized in earnings	0	0
Net OTTI losses recognized in earnings			(16)
Limited partnership interests
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	(2)	0	(9)
OTTI losses reclassified to (from) other comprehensive income	0	0	0
Net OTTI losses recognized in earnings	(2)	0
Net OTTI losses recognized in earnings			(9)
Other
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	(14)	(1)	(2)
OTTI losses reclassified to (from) other comprehensive income	0	0	0
Net OTTI losses recognized in earnings	$ (14)	$ (1)
Net OTTI losses recognized in earnings			$ (2)

Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2019

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

Schedule of components of other comprehensive (loss) income on a pre-tax and after-tax basis

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



($ in millions)	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	$	878		$	(184	)	$	694		$	(483	)	$	101	$	(382	)	$	51	$	(18	)	$	33
Less: reclassification adjustment of realized capital gains and losses	19			(4		)	15			(35		)	7		(28		)	43		(15		)	28
Unrealized net capital gains and losses	859			(180		)	679			(448		)	94		(354		)	8		(3		)	5
Unrealized foreign currency translation adjustments	(22		)	5			(17		)	—			—		—			17		(6		)	11
Other comprehensive income (loss)	$	837		$	(175	)	$	662		$	(448	)	$	94	$	(354	)	$	25	$	(9	)	$	16

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

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of volume and fair value positions of derivative instruments and reporting location in the Condensed Consolidated Statement of Financial Position



($ in millions, except number of contracts)		Volume ⁽¹⁾
	Balance sheet location	Notional amount		Number of contracts	Fair value, net			Gross asset		Gross liability
Asset derivatives
Derivatives designated as fair value accounting hedging instruments
Other	Other assets	$	2	n/a	$	—		$	—	$	—
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Futures	Other assets	—		476	—			—		—
Equity and index contracts
Options	Other investments	—		2,981	124			124		—
Futures	Other assets	—		27	—			—		—
Total return index contracts
Total return swap agreements - fixed income	Other investments	7		n/a	—			—		—
Credit default contracts
Credit default swaps - buying protection	Other investments	1		n/a	—			—		—
Subtotal		8		3,484	124			124		—
Total asset derivatives		$	10	3,484	$	124		$	124	$	—

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	—		263	—			—		—
Equity and index contracts
Options	Other liabilities & accrued expenses	—		2,844	(60		)	—		(60		)
Futures	Other liabilities & accrued expenses	—		1	—			—		—
Total return index contracts
Total return swap agreements - fixed income	Other liabilities & accrued expenses	10		n/a	—			—		—
Total return swap agreements - equity	Other liabilities & accrued expenses	14		n/a	1			1		—
Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	242		n/a	6			9		(3		)
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	1,678		n/a	(395		)	—		(395		)
Credit default contracts
Credit default swaps - buying protection	Other liabilities & accrued expenses	26		n/a	(2		)	—		(2		)
Credit default swaps - selling protection	Other liabilities & accrued expenses	5		n/a	—			—		—
Total liability derivatives		2,375		3,108	(482		)	$	10	$	(492	)
Total derivatives		$	2,385	6,592	$	(358	)

^{_________________________________________}



($ in millions, except number of contracts)		Volume
	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	—		330	—			—		—
Equity and index contracts
Options	Other investments	—		3,440	21			21		—
Futures	Other assets	—		26	—			—		—
Total return index contracts
Total return swap agreements - fixed income	Other investments	7		n/a	—			—		—
Total return swap agreements - equity index	Other investments	10		n/a	(1		)	—		(1		)
Foreign currency contracts
Foreign currency forwards	Other investments	240		n/a	8			8		—
Credit default contracts
Credit default swaps - buying protection	Other investments	27		n/a	—			1		(1		)
Other contracts
Other	Other assets	2		n/a	—			—		—
Total asset derivatives		$	292	3,796	$	28		$	30	$	(2	)

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	$	—
Equity and index contracts
Options and futures	Other liabilities & accrued expenses	—		3,266	(5		)	—		(5		)
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	1,696		n/a	(184		)	—		(184		)
Credit default contracts
Credit default swaps – selling protection	Other liabilities & accrued expenses	1		n/a	—			—		—
Total liability derivatives		2,107		3,266	(227		)	$	1	$	(228	)
Total derivatives		$	2,399	7,062	$	(199	)

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

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



($ in millions)				Offsets
	Gross amount			Counter- party netting			Cash collateral (received) pledged			Net amount on balance sheet			Securities collateral (received) pledged		Net amount
December 31, 2019
Asset derivatives	$	10		$	(10	)	$	—		$	—		$	—	$	—
Liability derivatives	(5		)	10			(7		)	(2		)	—		(2		)

December 31, 2018
Asset derivatives	$	10		$	(3	)	$	(5	)	$	2		$	—	$	2
Liability derivatives	(2		)	3			(1		)	—			—		—

Summary of impacts on operations and AOCI from foreign currency contracts, cash flow hedges

The following table provides a summary of the impacts of the Company’s foreign currency contracts in cash flow hedging relationships for the years ended December 31.



($ in millions)	2019		2018		2017
Gain (loss) recognized in OCI on derivatives during the period	$	—	$	1	$	(2	)
Gain recognized in OCI on derivatives during the term of the hedging relationship	—		—		2
Gain reclassified from AOCI into income (net investment income)	—		—		1
Gain reclassified from AOCI into income (realized capital gains and losses)	—		3		—

Schedule of gains and losses from valuation, settlements, and hedge ineffectiveness, fair value hedges and derivatives not designated as hedges



($ in millions)	Realized capital gains and losses			Contract benefits			Interest credited to contractholder funds			Total gain (loss) recognized in net income on derivatives
2019
Equity and index contracts	$	5		$	—		$	58		$	63
Embedded derivative financial instruments	—			7			(57		)	(50		)
Foreign currency contracts	3			—			—			3
Credit default contracts	(1		)	—			—			(1		)
Total return swaps - fixed income	1			—			—			1
Total return swaps - equity index	3			—			—			3
Total	$	11		$	7		$	1		$	19

2018
Interest rate contracts	$	1		$	—		$	—		$	1
Equity and index contracts	(4		)	—			(23		)	(27		)
Embedded derivative financial instruments	—			(5		)	66			61
Foreign currency contracts	12			—			—			12
Total return swaps - fixed income	(1		)	—			—			(1		)
Total return swaps - equity index	(1		)	—			—			(1		)
Total	$	7		$	(5	)	$	43		$	45

2017
Equity and index contracts	$	(4	)	$	—		$	45		$	41
Embedded derivative financial instruments	—			9			(5		)	4
Foreign currency contracts	(14		)	—			—			(14		)
Credit default contracts	2			—			—			2
Total	$	(16	)	$	9		$	40		$	33

Summary of counterparty credit exposure by counterparty credit rating

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



($ in millions)	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+	5	$	296	$	7	$	—	3	$	283	$	9	$	1
A	—	—		—		—		1	23		—		—
Total	5	$	296	$	7	$	—	4	$	306	$	9	$	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.

Summary of 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	$	4		$	2
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(3		)	(2		)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	(1		)	—
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$	—		$	—

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

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



($ in millions)	Notional amount
	AA		A		BBB		BB and lower		Total		Fair value
December 31, 2019
Single name
Corporate debt	$	—	$	—	$	—	$	5	$	5	$	—
Total	$	—	$	—	$	—	$	5	$	5	$	—

December 31, 2018
Single name
Corporate debt	$	—	$	—	$	—	$	1	$	1	$	—
Total	$	—	$	—	$	—	$	1	$	1	$	—

Contractual amounts of off-balance-sheet financial instruments

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



($ in millions)	2019		2018
Commitments to invest in limited partnership interests	$	1,063	$	1,195
Private placement commitments	16		7
Other loan commitments	118		176

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
Balance, beginning of year	$ 1,232	$ 1,156	$ 1,187
Acquisition costs deferred	55	78	122
Amortization charged to income	(180)	(146)	(152)
Effect of unrealized gains and losses	(160)	144	(46)
Reinsurance ceded	0	0	45
Balance, end of year	947	1,232	1,156
DSI activity relates to fixed annuities and interest-sensitive life contracts
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

General (Details) $ in Millions	12 Months Ended
General (Details) $ in Millions	Dec. 31, 2019 USD ($) state	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Premiums and contract charges by product
Premiums	$ 677	$ 704	$ 690
Contract charges	682	695	703
Total premiums and contract charges	$ 1,359	1,399	1,393
Number of states in which entity is authorized to operate \| state	50
Minimum percentage of premiums from one jurisdiction to be considered as significant	5.00%
Traditional life insurance
Premiums and contract charges by product
Premiums	$ 557	582	579
Accident and health insurance
Premiums and contract charges by product
Premiums	120	122	111
Interest-sensitive life insurance
Premiums and contract charges by product
Contract charges	669	680	689
Fixed annuities
Premiums and contract charges by product
Contract charges	$ 13	$ 15	$ 14

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2019	Feb. 28, 2020	Jun. 30, 2019
Document and Entity Information
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	IL
Entity Registrant Name	ALLSTATE LIFE INSURANCE CO
Entity Central Index Key	0000352736
Document Type	10-K
Document Annual Report	true
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		23,800
Entity Public Float			$ 0
Entity Tax Identification Number	36-2554642
Document Transition Report	false
Entity File Number	0-31248
Entity Address, Address Line One	3075 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

Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of notes due to related parties

Investors in the notes are as follows:



($ in millions)	December 31, 2019 ⁽²⁾		December 31, 2018 ⁽³⁾
Class A Notes ⁽¹⁾
Allstate New Jersey Insurance Company	$	83	$	77
American Heritage Life Insurance Company	59		37
Allstate Assurance Company	33		19
First Colonial Insurance Company	9		7
Allstate Fire & Casualty Insurance Company	7		—
Allstate Property and Casualty Insurance Company	6		—
Allstate Indemnity Company	4		—
Esurance Insurance Company	4		—
North Light Specialty Insurance Company	3		—
Allstate Vehicle and Property Insurance Company	2		—
Allstate New Jersey Property and Casualty Insurance Company	2		—
Esurance Property and Casualty Insurance Company	2		—
Subtotal - Class A	214		140
Class B Deferrable Notes
Allstate Life Insurance Company	214		140
Class C Deferrable Notes
Allstate Life Insurance Company	168		110
Subordinated Notes
Allstate Life Insurance Company	45		29
Total	$	641	$	419

_______________


⁽¹⁾	As of December 31, 2019, $74 million of these notes have an annual interest rate of 3.16% and $140 million have an annual interest rate of 3.36%. As of December 31, 2018, all notes had an annual interest rate of 3.25%.


⁽²⁾	Notes due March 10, 2037.

⁽³⁾

Notes due March 10, 2034

Capital Structure	12 Months Ended
Capital Structure	Dec. 31, 2019
Debt Disclosure [Abstract]
Capital Structure	Capital Structure Debt outstanding All of the Company’s outstanding debt as of December 31, 2019 and 2018 relates to intercompany obligations. These obligations reflect notes due to related parties and are discussed in Note 4. The Company paid $5 million, $5 million and $6 million of interest on debt in 2019, 2018 and 2017, respectively. The Company had $61 million and $62 million of investment-related debt that is reported in other liabilities and accrued expenses as of December 31, 2019 and 2018, respectively.

Reserve for Life-Contingent Contract Benefits and Contractholder Funds - Contractholder funds (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Contractholder funds activity
Balance, beginning of year	$ 17,470	$ 18,592	$ 19,470
Deposits	834	863	909
Interest credited	581	597	635
Benefits	(769)	(810)	(871)
Surrenders and partial withdrawals	(844)	(1,095)	(960)
Contract charges	(637)	(645)	(655)
Net transfers from separate accounts	11	7	4
Other adjustments	65	(39)	60
Balance, end of year	$ 16,711	$ 17,470	$ 18,592

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Premiums, reinsurance ceded	$ 139	$ 138	$ 149
Contract charges, reinsurance ceded	180	188	191
Contract benefits, reinsurance ceded	187	249	208
Interest credited to contractholder funds, reinsurance ceded	$ 40	$ 44	$ 46

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	$ 530	$ 365	$ 996
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and other non-cash items	(60)	(58)	(64)
Realized capital gains and losses	(341)	175	(49)
Gain on disposition of operations	(6)	(6)	(7)
Interest credited to contractholder funds	585	601	639
Changes in:
Policy benefits and other insurance reserves	(610)	(612)	(529)
Deferred policy acquisition costs	125	67	31
Reinsurance recoverables, net	66	51	56
Income taxes	8	(64)	(308)
Other operating assets and liabilities	69	136	(159)
Net cash provided by operating activities	366	655	606
Proceeds from sales
Fixed income securities	3,800	4,858	3,916
Equity securities	984	1,257	1,536
Limited partnership interests	354	367	539
Other investments	61	39	45
Investment collections
Fixed income securities	1,355	1,448	1,733
Mortgage loans	537	434	566
Other investments	76	168	208
Investment purchases
Fixed income securities	(4,406)	(5,444)	(4,698)
Equity securities	(844)	(1,086)	(1,385)
Limited partnership interests	(398)	(551)	(631)
Mortgage loans	(532)	(552)	(503)
Other investments	(103)	(270)	(238)
Change in short-term investments, net	(343)	(3)	(12)
Change in policy loans and other investments, net	(63)	(69)	(37)
Net cash provided by investing activities	478	596	1,039
Cash flows from financing activities
Contractholder fund deposits	747	771	808
Contractholder fund withdrawals	(1,599)	(1,893)	(1,823)
Proceeds from issuance of notes to related parties	215	0	0
Repayment of notes to related parties	(141)	0	0
Dividends paid	(75)	(250)	(600)
Other	0	28	(23)
Net cash used in financing activities	(853)	(1,344)	(1,638)
Net (decrease) increase in cash	(9)	(93)	7
Cash at beginning of year	52	145	138
Cash at end of year	$ 43	$ 52	$ 145

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Components of the deferred income tax assets and liabilities

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



($ in millions)	2019			2018
Deferred tax assets
Deferred reinsurance gain	$	6		$	7
Other assets	1			1
Total deferred tax assets	7			8
Deferred tax liabilities
Life and annuity reserves	(253		)	(223		)
Unrealized net capital gains	(245		)	(65		)
Investments	(185		)	(131		)
DAC	(169		)	(201		)
Other liabilities	(49		)	(51		)
Total deferred tax liabilities	(901		)	(671		)
Net deferred tax liability	$	(894	)	$	(663	)

Components of income tax expense

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



($ in millions)	2019		2018			2017
Current	$	76	$	116		$	104
Deferred	52		(99		)	(382		)
Total income tax expense (benefit)	$	128	$	17		$	(278	)

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

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



($ in millions)	2019		2018		2017
Statutory federal income tax rate - expense	21.0	%	21.0	%	35.0	%
Tax credits	(1.9	)	(3.2	)	(1.7	)
Dividends received deduction	(0.5	)	(0.7	)	(0.6	)
State income taxes	0.5		1.5		0.6
Adjustments to prior year tax liabilities	0.2		(0.3	)	(0.3	)
Non-deductible expenses	0.1		—		0.1
Tax Legislation benefit	—		(14.0	)	(71.8	)
Other	—		0.1		—
Effective income tax rate expense (benefit)	19.4	%	4.4	%	(38.7	)%

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

SCHEDULE I - SUMMARY OF INVESTMENTS

OTHER THAN INVESTMENTS IN RELATED PARTIES

DECEMBER 31, 2019



($ in millions)	Cost/ amortized cost		Fair value		Amount shown in the Balance Sheet
Type of investment
Fixed maturities:
Bonds:
United States government, government agencies and authorities	$	848	$	882	$	882
States, municipalities and political subdivisions	1,483		1,755		1,755
Foreign governments	142		149		149
Public utilities	3,072		3,390		3,390
All other corporate bonds	14,229		15,051		15,051
Asset-backed securities	316		317		317
Mortgage-backed securities	127		181		181
Total fixed maturities	20,217		$	21,725	21,725

Equity securities:
Common stocks:
Public utilities	20		$	30	30
Banks, trusts and insurance companies	111		158		158
Industrial, miscellaneous and all other	967		1,252		1,252
Nonredeemable preferred stocks	25		29		29
Total equity securities	1,123		$	1,469	1,469

Mortgage loans on real estate	3,988		$	4,176	3,988
Real estate (none acquired in satisfaction of debt)	292				292
Policy loans	557				557
Derivative instruments	124		$	124	124
Limited partnership interests	3,250				3,250
Other long-term investments	1,011				1,011
Short-term investments	1,191		$	1,191	1,191
Total investments	$	31,753			$	33,607

Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Summary of quantitative information about the significant unobservable inputs used in Level 3 fair value measurements

The following table summarizes the Company’s 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			Balance as of December 31, 2019
Assets
Fixed income securities:
U.S. government and agencies	$	590		$	292		$	—					$	882
Municipal	—			1,715			40						1,755
Corporate - public	—			12,777			25						12,802
Corporate - privately placed	—			5,517			122						5,639
Foreign government	—			149			—						149
ABS	—			301			16						317
MBS	—			176			5						181
Total fixed income securities	590			20,927			208						21,725
Equity securities	1,340			13			116						1,469
Short-term investments	493			698			—						1,191
Other investments: Free-standing derivatives	—			134			—			$	(10	)	124
Separate account assets	3,009			—			—						3,009
Total recurring basis assets	$	5,432		$	21,772		$	324		$	(10	)	$	27,518
% of total assets at fair value	19.7		%	79.1		%	1.2		%	—		%	100		%

Investments reported at NAV													773
Total													$	28,291

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(427	)				$	(427	)
Other liabilities: Free-standing derivatives	—			(65		)	—			$	3		(62		)
Total recurring basis liabilities	$	—		$	(65	)	$	(427	)	$	3		$	(489	)
% of total liabilities at fair value	—		%	13.3		%	87.3		%	(0.6		)%	100		%

The following table summarizes the Company’s 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			Balance as of December 31, 2018
Assets
Fixed income securities:
U.S. government and agencies	$	493		$	280		$	—					$	773
Municipal	—			2,156			39						2,195
Corporate - public	—			11,891			33						11,924
Corporate - privately placed	—			5,566			97						5,663
Foreign government	—			179			—						179
ABS	—			407			22						429
MBS	—			237			—						237
Total fixed income securities	493			20,716			191						21,400
Equity securities	1,182			14			129						1,325
Short-term investments	443			367			—						810
Other investments: Free-standing derivatives	—			30			1			$	(8	)	23
Separate account assets	2,783			—			—						2,783
Total recurring basis assets	$	4,901		$	21,127		$	321		$	(8	)	$	26,341
% of total assets at fair value	18.6		%	80.2		%	1.2		%	—		%	100		%

Investments reported at NAV													787
Total													$	27,128

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(223	)				$	(223	)
Other liabilities: Free-standing derivatives	—			(7		)	—			$	2		(5		)
Total recurring basis liabilities	$	—		$	(7	)	$	(223	)	$	2		$	(228	)
% of total liabilities at fair value	—		%	3.1		%	97.8		%	(0.9		)%	100		%

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



($ in millions)	Fair value			Valuation technique	Unobservable input	Range	Weighted average
December 31, 2019
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(395	)	Stochastic cash flow model	Projected option cost	1.0 - 4.2%	2.57	%
December 31, 2018
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(184	)	Stochastic cash flow model	Projected option cost	1.0 - 2.2%	1.74	%

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

The following table presents the rollforward of Level 3 assets and liabilities held at fair value during the year ended December 31, 2019.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2018			Net income			OCI			Transfers into Level 3			Transfers out of Level 3			Purchases		Sales			Issues			Settlements			Balance as of December 31, 2019
Assets
Fixed income securities:
Municipal	$	39		$	—		$	4		$	—		$	—		$	—	$	(1	)	$	—		$	(2	)	$	40
Corporate - public	33			—			—			5			(38		)	32		(2		)	—			(5		)	25
Corporate - privately placed	97			(1		)	1			43			(1		)	4		(13		)	—			(8		)	122
ABS	22			1			(1		)	—			(30		)	36		(6		)	—			(6		)	16
MBS	—			—			(1		)	6			—			—		—			—			—			5
Total fixed income securities	191			—			3			54			(69		)	72		(22		)	—			(21		)	208
Equity securities	129			15			—			—			—			10		(38		)	—			—			116
Free-standing derivatives, net	1			(1		)	—			—			—			—		—			—			—			—
Total recurring Level 3 assets	$	321		$	14		$	3		$	54		$	(69	)	$	82	$	(60	)	$	—		$	(21	)	$	324
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(223	)	$	(52	)	$	—		$	(154	)	$	—		$	—	$	—		$	(10	)	$	12		$	(427	)
Total recurring Level 3 liabilities	$	(223	)	$	(52	)	$	—		$	(154	)	$	—		$	—	$	—		$	(10	)	$	12		$	(427	)

The following table presents the 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		Contract benefits		Interest credited to contractholder funds			Total
Components of net income	$	(2	)	$	16	$	7	$	(59	)	$	(38	)

The following table presents the rollforward of Level 3 assets and liabilities held at fair value during the year ended December 31, 2018.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2017			Net income			OCI			Transfers into Level 3		Transfers out of Level 3			Purchases		Sales			Issues			Settlements			Balance as of December 31, 2018
Assets
Fixed income securities:
Municipal	$	57		$	—		$	(2	)	$	—	$	(16	)	$	2	$	(2	)	$	—		$	—		$	39
Corporate - public	49			—			(2		)	3		(3		)	—		(11		)	—			(3		)	33
Corporate - privately placed	220			(2		)	(2		)	10		(101		)	12		—			—			(40		)	97
ABS	50			—			—			12		(18		)	20		(19		)	—			(23		)	22
Total fixed income securities	376			(2		)	(6		)	25		(138		)	34		(32		)	—			(66		)	191
Equity securities	90			16			—			—		—			30		(7		)	—			—			129
Free-standing derivatives, net	1			—			—			—		—			—		—			—			—			1			⁽¹	⁾
Total recurring Level 3 assets	$	467		$	14		$	(6	)	$	25	$	(138	)	$	64	$	(39	)	$	—		$	(66	)	$	321
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(284	)	$	57		$	—		$	—	$	—		$	—	$	—		$	(2	)	$	6		$	(223	)
Total recurring Level 3 liabilities	$	(284	)	$	57		$	—		$	—	$	—		$	—	$	—		$	(2	)	$	6		$	(223	)

____________________


⁽¹⁾	Comprises $1 million of assets.

The following table presents the 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		Contract benefits			Interest credited to contractholder funds		Total
Components of net income	$	—	$	14	$	(5	)	$	62	$	71

The following table presents the rollforward of Level 3 assets and liabilities held at fair value during the year ended December 31, 2017.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2016			Net income			OCI			Transfers into Level 3		Transfers out of Level 3			Purchases		Sales			Issues			Settlements			Balance as of December 31, 2017
Assets
Fixed income securities:
Municipal	$	59		$	—		$	2		$	—	$	—		$	—	$	(2	)	$	—		$	(2	)	$	57
Corporate - public	47			1			—			3		(15		)	17		—			—			(4		)	49
Corporate - privately placed	264			7			(2		)	11		(16		)	20		(30		)	—			(34		)	220
ABS	69			—			6			4		(36		)	34		—			—			(27		)	50
Total fixed income securities	439			8			6			18		(67		)	71		(32		)	—			(67		)	376
Equity securities	76			8			3			—		—			13		(10		)	—			—			90
Free-standing derivatives, net	(2		)	3			—			—		—			—		—			—			—			1			⁽¹	⁾
Other assets	1			(1		)	—			—		—			—		—			—			—			—
Total recurring Level 3 assets	$	514		$	18		$	9		$	18	$	(67	)	$	84	$	(42	)	$	—		$	(67	)	$	467
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(289	)	$	1		$	—		$	—	$	—		$	—	$	—		$	(2	)	$	6		$	(284	)
Total recurring Level 3 liabilities	$	(289	)	$	1		$	—		$	—	$	—		$	—	$	—		$	(2	)	$	6		$	(284	)

____________________


⁽¹⁾	Comprises $1 million of assets.

The following table presents the 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		Contract benefits		Interest credited to contractholder funds			Total
Components of net income	$	10	$	9	$	9	$	(9	)	$	19

Schedule of change in unrealized gains and losses included in net income for Level 3 assets and liabilities held

The table below provides 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		$	—		$	—
Corporate	—			—			1
Total fixed income securities	1			—			1
Equity securities	2			16			9
Free-standing derivatives, net	(1		)	—			—
Other assets	—			—			(1		)
Total recurring Level 3 assets	$	2		$	16		$	9

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(52	)	$	57		$	1
Total recurring Level 3 liabilities	$	(52	)	$	57		$	1
Total included in net income	$	(50	)	$	73		$	10

Components of net income
Net investment income	$	(2	)	$	—		$	10
Realized capital gains and losses	4			16			—
Contract benefits	7			(5		)	9
Interest credited to contractholder funds	(59		)	62			(9		)
Total included in net income	$	(50	)	$	73		$	10

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

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



($ 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	$	3,988	$	4,159	$	3,995	$	4,028
Bank loans	Level 3	344		337		422		408
Agent loans	Level 3	666		664		620		617

Financial liabilities
Contractholder funds on investment contracts	Level 3	$	8,403	$	9,123	$	9,213	$	9,629
Liability for collateral	Level 2	530		530		525		525
Notes due to related parties	Level 3	214		215		140		138

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

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



($ in millions)	2019			2018			2017
Balance, beginning of year	$	1,232		$	1,156		$	1,187
Acquisition costs deferred	55			78			122
Amortization charged to income	(180		)	(146		)	(152		)
Effect of unrealized gains and losses	(160		)	144			(46		)
Reinsurance assumed from AAC	—			—			45
Balance, end of year	$	947		$	1,232		$	1,156

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



($ 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

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	$	107,014	$	75,159	$	284,518	$	316,373	89.9	%

Premiums and contract charges:
Life insurance	$	683	$	302	$	858	$	1,239	69.2	%
Accident and health insurance	65		17		72		120		60.0	%
Total premiums and contract charges	$	748	$	319	$	930	$	1,359	68.4	%

Year ended December 31, 2018
Life insurance in force	$	113,202	$	83,166	$	301,316	$	331,352	90.9	%

Premiums and contract charges:
Life insurance	$	679	$	308	$	906	$	1,277	70.9	%
Accident and health insurance	64		18		76		122		62.3	%
Total premiums and contract charges	$	743	$	326	$	982	$	1,399	70.2	%

Year ended December 31, 2017
Life insurance in force	$	114,354	$	89,603	$	321,331	$	346,082	92.8	%

Premiums and contract charges:
Life insurance	$	677	$	320	$	925	$	1,282	72.2	%
Accident and health insurance	57		20		74		111		66.7	%
Total premiums and contract charges	$	734	$	340	$	999	$	1,393	71.7	%

______________________________

⁽¹⁾

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

Reinsurance

12 Months Ended

Dec. 31, 2019

Reinsurance Disclosures [Abstract]

Reinsurance

The Company reinsures certain of its risks to other insurers primarily under yearly renewable term, coinsurance and modified coinsurance 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 is 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. The following table summarizes those retention limits by period of policy issuance.



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

In addition, 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.

The amounts ceded to Prudential for the years ended December 31 are as follows:



($ 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.

ALIC and its subsidiary ALNY are parties to a reinsurance treaty through which ALNY cedes reinvestment related risk on its structured settlement annuities to ALIC. The reinsurance treaty is eliminated in consolidation. In 2019, ALIC established a trust for the benefit of ALNY and will maintain it with assets equal to or greater than ALNY’s statutory-basis cession. As of December 31, 2019, the trust held $1.45 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 $391.53 billion of which $4.40 billion and $70.76 billion were ceded to affiliated and unaffiliated reinsurers, respectively.

The effects of reinsurance on premiums and contract charges for the years ended December 31 are as follows:



($ in millions)	2019			2018			2017
Direct	$	748		$	743		$	734
Assumed
Affiliate	231			241			227
Non-affiliate	699			741			772
Ceded
Affiliate	(49		)	(51		)	(52		)
Non-affiliate	(270		)	(275		)	(288		)
Premiums and contract charges, net of reinsurance	$	1,359		$	1,399		$	1,393

The effects of reinsurance on contract benefits for the years ended December 31 are as follows:



($ in millions)	2019			2018			2017
Direct	$	1,038		$	1,062		$	1,003
Assumed
Affiliate	137			149			130
Non-affiliate	493			484			505
Ceded
Affiliate	(35		)	(35		)	(33		)
Non-affiliate	(152		)	(214		)	(175		)
Contract benefits, net of reinsurance	$	1,481		$	1,446		$	1,430

The effects of reinsurance on interest credited to contractholder funds for the years ended December 31 are as follows:



($ in millions)	2019			2018			2017
Direct	$	463		$	533		$	546
Assumed
Affiliate	8			8			8
Non-affiliate	154			104			131
Ceded
Affiliate	(20		)	(20		)	(21		)
Non-affiliate	(20		)	(24		)	(25		)
Interest credited to contractholder funds, net of reinsurance	$	585		$	601		$	639

Reinsurance recoverables on paid and unpaid benefits as of December 31 are summarized in the following table.



($ in millions)	2019		2018
Annuities	$	1,293	$	1,369
Life insurance	1,145		1,183
Other	52		53
Total	$	2,490	$	2,605

As of both December 31, 2019 and 2018, approximately 78% of the Company’s reinsurance recoverables are due from companies rated A- or better by S&P.

Benefit Plans	12 Months Ended
Benefit Plans	Dec. 31, 2019
Retirement Benefits [Abstract]
Benefit Plans	Benefit Plans Pension and other postretirement plans Defined benefit pension plans and other postretirement plans, sponsored by the Corporation, 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 and eligible annual compensation. The Corporation also provides a medical coverage subsidy for eligible employees hired before January 1, 2003, including their eligible dependents, when they retire. The cost allocated to the Company for these plans was $3 million, $2 million and $7 million in 2019, 2018 and 2017, respectively. The Corporation has reserved the right to modify or terminate its benefit plans at any time and for any reason. Allstate 401(k) Savings Plan Employees of AIC are eligible to become members of the Allstate 401(k) Savings Plan (“Allstate Plan”). The Corporation’s contributions are based on the Corporation’s matching obligation. The cost allocated to the Company for the Allstate Plan was $4 million, $5 million and $4 million in 2019, 2018 and 2017, respectively.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Investments
Fixed income securities, at fair value (amortized cost $20,217 and $21,057)	$ 21,725	$ 21,400
Mortgage loans	3,988	3,995
Equity securities	1,469	1,325
Limited partnership interests	3,250	3,292
Short-term investments	1,191	810
Policy loans	557	561
Other	1,427	1,300
Total investments	33,607	32,683
Cash	43	52
Deferred policy acquisition costs	947	1,232
Reinsurance recoverable	2,490	2,605
Accrued investment income	239	253
Other assets	794	534
Separate Accounts	3,009	2,783
Total assets	41,129	40,142
Liabilities
Contractholder funds	16,711	17,470
Reserve for life-contingent contract benefits	11,272	11,239
Unearned premiums	4	4
Payable to affiliates, net	35	50
Other liabilities and accrued expenses	1,181	1,101
Deferred income taxes	894	663
Notes due to related parties	214	140
Separate Accounts	3,009	2,783
Total liabilities	33,320	33,450
Commitments and Contingent Liabilities (Notes 7 and 11)
Shareholder’s Equity
Common stock, $227 par value, 23,800 shares authorized and outstanding	5	5
Additional capital paid-in	2,024	2,024
Retained income	4,865	4,410
Unrealized net capital gains and losses:
Unrealized net capital gains and losses on fixed income securities with OTTI	41	45
Other unrealized net capital gains and losses	1,149	225
Unrealized adjustment to DAC, DSI and insurance reserves	(268)	(27)
Total unrealized net capital gains and losses	922	243
Unrealized foreign currency translation adjustments	(7)	10
Total accumulated other comprehensive income (“AOCI”)	915	253
Total shareholder’s equity	7,809	6,692
Total liabilities and shareholder’s equity	41,129	40,142
Series A
Shareholder’s Equity
Redeemable preferred stock	0	0
Series B
Shareholder’s Equity
Redeemable preferred stock	0	0
Non-affiliate
Investments
Reinsurance recoverable	2,082	2,185
Affiliate
Investments
Reinsurance recoverable	$ 408	$ 420

Investments - Total unrealized losses (Details) $ in Millions	Dec. 31, 2019 USD ($) security	Dec. 31, 2018 USD ($) security
Total unrealized losses
Total unrealized losses	$ (41)
Fixed income securities
Fixed Income Securities [Abstract]
Number of issues \| security	132	1,458
Fair value	$ 662	$ 7,088
Unrealized losses	$ (14)	$ (220)
Fixed income securities
Number of issues \| security	71	436
Fair value	$ 275	$ 2,701
Unrealized losses	(27)	(169)
Total unrealized losses
Total unrealized losses	$ (41)	$ (389)
U.S. government and agencies
Fixed Income Securities [Abstract]
Number of issues \| security	6	2
Fair value	$ 74	$ 6
Unrealized losses	$ 0	$ 0
Fixed income securities
Number of issues \| security	0	1
Fair value	$ 0	$ 1
Unrealized losses	0	0
Total unrealized losses
Total unrealized losses	$ 0	$ 0
Municipal
Fixed Income Securities [Abstract]
Number of issues \| security	4	38
Fair value	$ 22	$ 98
Unrealized losses	$ (5)	$ (1)
Fixed income securities
Number of issues \| security	1	5
Fair value	$ 14	$ 26
Unrealized losses	(2)	(3)
Total unrealized losses
Total unrealized losses	$ (7)	$ (4)
Corporate
Fixed Income Securities [Abstract]
Number of issues \| security	92	1,261
Fair value	$ 504	$ 6,799
Unrealized losses	$ (8)	$ (218)
Fixed income securities
Number of issues \| security	43	370
Fair value	$ 237	$ 2,633
Unrealized losses	(22)	(163)
Total unrealized losses
Total unrealized losses	$ (30)	$ (381)
ABS
Fixed Income Securities [Abstract]
Number of issues \| security	22	30
Fair value	$ 61	$ 167
Unrealized losses	$ (1)	$ (1)
Fixed income securities
Number of issues \| security	5	11
Fair value	$ 19	$ 31
Unrealized losses	(2)	(2)
Total unrealized losses
Total unrealized losses	$ (3)	$ (3)
MBS
Fixed Income Securities [Abstract]
Number of issues \| security	8	127
Fair value	$ 1	$ 18
Unrealized losses	$ 0	$ 0
Fixed income securities
Number of issues \| security	22	49
Fair value	$ 5	$ 10
Unrealized losses	(1)	(1)
Total unrealized losses
Total unrealized losses	$ (1)	$ (1)
Investment grade fixed income securities
Fixed Income Securities [Abstract]
Number of issues \| security	85	948
Fair value	$ 524	$ 5,255
Unrealized losses	$ (3)	$ (121)
Fixed income securities
Number of issues \| security	39	388
Fair value	$ 152	$ 2,551
Unrealized losses	(17)	(147)
Total unrealized losses
Total unrealized losses	$ (20)	$ (268)
Below investment grade fixed income securities
Fixed Income Securities [Abstract]
Number of issues \| security	47	510
Fair value	$ 138	$ 1,833
Unrealized losses	$ (11)	$ (99)
Fixed income securities
Number of issues \| security	32	48
Fair value	$ 123	$ 150
Unrealized losses	(10)	(22)
Total unrealized losses
Total unrealized losses	$ (21)	$ (121)

Reserve for Life-Contingent Contract Benefits and Contractholder Funds - Reserve for life-contingent contract benefits (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Reserve for life-contingent benefits:
Total reserve for life-contingent contract benefits	$ 11,272	$ 11,239
Structured settlement annuities
Reserve for life-contingent benefits:
Total reserve for life-contingent contract benefits	$ 6,840	6,701
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	$ 1,607	1,709
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	$ 2,552	2,517
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	$ 195	203
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	$ 109
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%

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
Asset derivatives gross amount	$ 124	$ 30
Asset derivatives, Gross liability	0	(2)
Total asset derivatives, Fair value, net	124	28
Liability derivatives
Liability derivatives gross amount	(492)	(228)
Liability derivatives, Gross asset	10	1
Derivative liabilities net amount on balance sheet	(482)	(227)
OTC derivatives
Asset derivatives
Asset derivatives gross amount	10	10
Asset derivatives, Gross liability	(10)	(3)
Derivative asset offsets under cash collateral received	0	(5)
Total asset derivatives, Fair value, net	0	2
Derivative assets pledged under securities collateral	0	0
Asset derivatives, net amount	0	2
Liability derivatives
Liability derivatives gross amount	(5)	(2)
Liability derivatives, Gross asset	10	3
Derivative liability offsets under cash collateral pledged	(7)	(1)
Derivative liabilities net amount on balance sheet	(2)	0
Derivative liabilities received under securities collateral	0	0
Liability derivatives, net amount	$ (2)	$ 0

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

ALIC and its subsidiaries (the “Allstate Life Group”) join with the Corporation (the “Allstate Group”) in the filing of a consolidated federal income tax return and are party to a federal income tax allocation agreement (the “Allstate Tax Sharing Agreement”). Under the Allstate Tax Sharing Agreement, the Allstate Life Group pays to or receives from the Corporation the amount, if any, by which the Allstate Group’s federal income tax liability is affected by virtue of inclusion of the Allstate Life Group in the consolidated federal income tax return. Effectively, this results in the Allstate Life Group’s annual income tax provision being computed, with adjustments, as if the Allstate Life Group filed a separate return.

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.

The Internal Revenue Service (“IRS”) is currently examining the Allstate Group’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 Allstate Group 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 Allstate Group’s tax returns are not expected to have a material effect on the consolidated financial statements.

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.

The Company had $14 million, $14 million and $2 million liability for unrecognized tax benefits as of December 31, 2019, 2018 and 2017, respectively. The change in the liability for unrecognized tax benefits in 2018 related to the increase for tax positions taken in the current year. The Company believes it is reasonably possible that a decrease of up to $2 million in unrecognized tax benefits may occur within the next twelve months due to IRS settlements.

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



($ in millions)	2019			2018
Deferred tax assets
Deferred reinsurance gain	$	6		$	7
Other assets	1			1
Total deferred tax assets	7			8
Deferred tax liabilities
Life and annuity reserves	(253		)	(223		)
Unrealized net capital gains	(245		)	(65		)
Investments	(185		)	(131		)
DAC	(169		)	(201		)
Other liabilities	(49		)	(51		)
Total deferred tax liabilities	(901		)	(671		)
Net deferred tax liability	$	(894	)	$	(663	)

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.

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



($ in millions)	2019		2018			2017
Current	$	76	$	116		$	104
Deferred	52		(99		)	(382		)
Total income tax expense (benefit)	$	128	$	17		$	(278	)

The Company paid taxes of $62 million and $30 million in 2019 and 2018, respectively, and received refunds of $1 million in 2017. The Company had current income tax payable of $29 million and $78 million as of December 31, 2019 and 2018, respectively.

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



($ in millions)	2019		2018		2017
Statutory federal income tax rate - expense	21.0	%	21.0	%	35.0	%
Tax credits	(1.9	)	(3.2	)	(1.7	)
Dividends received deduction	(0.5	)	(0.7	)	(0.6	)
State income taxes	0.5		1.5		0.6
Adjustments to prior year tax liabilities	0.2		(0.3	)	(0.3	)
Non-deductible expenses	0.1		—		0.1
Tax Legislation benefit	—		(14.0	)	(71.8	)
Other	—		0.1		—
Effective income tax rate expense (benefit)	19.4	%	4.4	%	(38.7	)%

Investments - Total unrealized losses and limited partnerships narrative (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Limited partnerships
Limited partnership interests	$ 3,250	$ 3,292
Equity method limited partnerships
Limited partnerships
Limited partnership interests	2,480	2,510
Carrying value \| Cost method limited partnership interests
Limited partnerships
Limited partnership interests	$ 773	$ 787

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Basis of presentation

The Company operates as a single segment entity based on the manner in which the Company uses financial information to evaluate business performance and to determine the allocation of resources.

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 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.

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.

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 and Comprehensive Income 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.

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. Policy loans are carried at unpaid principal balances. Other investments primarily consist of bank loans, agent loans, real estate and derivatives. Bank loans are primarily senior secured corporate loans and are carried at amortized cost. 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, 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 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 or realized capital gains and losses 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

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 presentation

Other revenue

Other revenue represents gross dealer concessions received in connection with sales of non-proprietary products by Allstate exclusive agencies and exclusive financial specialists. 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 life insurance policies and investment contracts are deferred and recorded as DAC. These costs are principally agency’s and brokers’ remuneration and certain underwriting expenses. DSI costs, which are deferred and recorded as other assets, relate to sales inducements offered on sales to new customers, principally on fixed annuity and interest-sensitive life contracts. These sales inducements are primarily in the form of additional credits to the customer’s account balance or enhancements to interest credited for a specified period which are in excess of the rates currently being credited to similar contracts without sales inducements. All other acquisition costs are expensed as incurred and included in operating costs and expenses. Amortization of DAC is included in amortization of deferred policy acquisition costs and is described in more detail below. DSI is amortized into income using the same methodology and assumptions as DAC and is included in interest credited to contractholder funds.

For traditional life and voluntary accident and health insurance, DAC is amortized over the premium paying period of the related policies in proportion to the estimated revenues on such business. Assumptions used in the amortization of DAC and reserve calculations are established at the time the policy is issued and are generally not revised during the life of the policy. Any deviations from projected business in force resulting from actual policy terminations differing from expected levels and any estimated premium deficiencies may result in a change to the rate of amortization in the period such events occur. Generally, the amortization periods for these policies approximates the estimated lives of the policies. The Company periodically reviews the recoverability of DAC 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. Beginning in fourth quarter 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 and fixed annuities, DAC and DSI are amortized in proportion to the incidence of the total present value of gross profits, which includes both actual historical gross profits (“AGP”) and estimated future gross profits (“EGP”) expected to be earned over the estimated lives of the contracts. The amortization is net of interest on the prior period DAC balance using rates established at the inception of the contracts. Actual amortization periods generally range from 15-30 years; however, incorporating estimates of the rate of customer surrenders, partial withdrawals and deaths generally results in the majority of the DAC being amortized during the surrender charge period, which is typically 10-20 years for interest-sensitive life and 5-10 years for fixed annuities. The 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 shareholder’s 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 or life 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 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 $3 million as of both December 31, 2019 and 2018. Amortization expense of the present value of future profits was $357 thousand, $249 thousand and $232 thousand in 2019, 2018 and 2017, respectively.

Reinsurance

In the normal course of business, the Company seeks to limit aggregate and single exposure to losses on large risks by purchasing reinsurance. The Company has also used reinsurance to effect the disposition of certain blocks of business. The amounts reported as reinsurance recoverables include amounts billed to reinsurers on losses paid as well as estimates of amounts expected to be recovered from reinsurers on insurance liabilities and contractholder funds that have not yet been paid. Reinsurance recoverables on unpaid losses are estimated based upon assumptions consistent with those used in establishing the liabilities related to the underlying reinsured contracts. Insurance liabilities are reported gross of reinsurance recoverables. Reinsurance premiums are generally reflected in income in a manner consistent with the recognition of premiums on the reinsured contracts. Reinsurance does not extinguish the Company’s primary liability under the policies written. Therefore, the Company regularly evaluates the financial condition of its reinsurers and establishes allowances for uncollectible reinsurance as appropriate.

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 insurance reserves, investments (including unrealized capital gains and losses) and DAC. 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 operating costs and expenses.

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. Beginning in fourth quarter 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.

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 and Comprehensive Income. 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.

Off-balance sheet financial instruments

Commitments to invest, commitments to purchase private placement securities, commitments to extend loans, financial guarantees and credit guarantees have off-balance sheet risk because their contractual amounts are not recorded in the Company’s Consolidated Statements of Financial Position (see Note 7 and Note 11).

Consolidation of variable interest entities

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.

Accounting standards

Adopted accounting standard

Accounting for Hedging Activities

Effective January 1, 2019, the Company adopted new Financial Accounting Standards Board (“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 $85 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 $55 million, after-tax, to adjust existing valuation allowances to the basis in the new requirements.

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 other

comprehensive income 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 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 business. 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.

Fair value measurement

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

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


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


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


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

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

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:


•	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.

Level 3 measurements


•	Fixed income securities:


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


•	Other investments: Certain OTC derivatives, such as interest rate caps and certain credit default swaps, 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.

•

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Dec. 31, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	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 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. 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. 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 and Comprehensive Income 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. 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. Policy loans are carried at unpaid principal balances. Other investments primarily consist of bank loans, agent loans, real estate and derivatives. Bank loans are primarily senior secured corporate loans and are carried at amortized cost. 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, 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 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 or realized capital gains and losses 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 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 gross dealer concessions received in connection with sales of non-proprietary products by Allstate exclusive agencies and exclusive financial specialists. 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 life insurance policies and investment contracts are deferred and recorded as DAC. These costs are principally agency’s and brokers’ remuneration and certain underwriting expenses. DSI costs, which are deferred and recorded as other assets, relate to sales inducements offered on sales to new customers, principally on fixed annuity and interest-sensitive life contracts. These sales inducements are primarily in the form of additional credits to the customer’s account balance or enhancements to interest credited for a specified period which are in excess of the rates currently being credited to similar contracts without sales inducements. All other acquisition costs are expensed as incurred and included in operating costs and expenses. Amortization of DAC is included in amortization of deferred policy acquisition costs and is described in more detail below. DSI is amortized into income using the same methodology and assumptions as DAC and is included in interest credited to contractholder funds. For traditional life and voluntary accident and health insurance, DAC is amortized over the premium paying period of the related policies in proportion to the estimated revenues on such business. Assumptions used in the amortization of DAC and reserve calculations are established at the time the policy is issued and are generally not revised during the life of the policy. Any deviations from projected business in force resulting from actual policy terminations differing from expected levels and any estimated premium deficiencies may result in a change to the rate of amortization in the period such events occur. Generally, the amortization periods for these policies approximates the estimated lives of the policies. The Company periodically reviews the recoverability of DAC 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. Beginning in fourth quarter 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 and fixed annuities, DAC and DSI are amortized in proportion to the incidence of the total present value of gross profits, which includes both actual historical gross profits (“AGP”) and estimated future gross profits (“EGP”) expected to be earned over the estimated lives of the contracts. The amortization is net of interest on the prior period DAC balance using rates established at the inception of the contracts. Actual amortization periods generally range from 15-30 years; however, incorporating estimates of the rate of customer surrenders, partial withdrawals and deaths generally results in the majority of the DAC being amortized during the surrender charge period, which is typically 10-20 years for interest-sensitive life and 5-10 years for fixed annuities. The 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 shareholder’s 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 or life 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 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 $3 million as of both December 31, 2019 and 2018. Amortization expense of the present value of future profits was $357 thousand, $249 thousand and $232 thousand in 2019, 2018 and 2017, respectively. Reinsurance In the normal course of business, the Company seeks to limit aggregate and single exposure to losses on large risks by purchasing reinsurance. The Company has also used reinsurance to effect the disposition of certain blocks of business. The amounts reported as reinsurance recoverables include amounts billed to reinsurers on losses paid as well as estimates of amounts expected to be recovered from reinsurers on insurance liabilities and contractholder funds that have not yet been paid. Reinsurance recoverables on unpaid losses are estimated based upon assumptions consistent with those used in establishing the liabilities related to the underlying reinsured contracts. Insurance liabilities are reported gross of reinsurance recoverables. Reinsurance premiums are generally reflected in income in a manner consistent with the recognition of premiums on the reinsured contracts. Reinsurance does not extinguish the Company’s primary liability under the policies written. Therefore, the Company regularly evaluates the financial condition of its reinsurers and establishes allowances for uncollectible reinsurance as appropriate. 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 insurance reserves, investments (including unrealized capital gains and losses) and DAC. 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 operating costs and expenses. 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. Beginning in fourth quarter 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. 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 and Comprehensive Income. 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. Off-balance sheet financial instruments Commitments to invest, commitments to purchase private placement securities, commitments to extend loans, financial guarantees and credit guarantees have off-balance sheet risk because their contractual amounts are not recorded in the Company’s Consolidated Statements of Financial Position (see Note 7 and Note 11). 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. Adopted accounting standard Accounting for Hedging Activities Effective January 1, 2019, the Company adopted new Financial Accounting Standards Board (“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 $85 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 $55 million, after-tax, to adjust existing valuation allowances to the basis in the new requirements. 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 other comprehensive income 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 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 business. 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.

Related Party Transactions

12 Months Ended

Dec. 31, 2019

Related Party Transactions

Business operations

The Company uses services performed by AIC and other affiliates, and business facilities owned or leased and operated by AIC in conducting its business activities. In addition, the Company shares the services of employees with AIC. The Company reimburses its affiliates for the operating expenses incurred on behalf of the Company. The Company is charged for the cost of these operating expenses based on the level of services provided. Operating expenses, including compensation, retirement and other benefit programs (see Note 15), allocated to the Company were $211 million, $235 million and $243 million in 2019, 2018 and 2017, respectively.

Agent loan sale and securitization

On December 22, 2016, ALIC’s subsidiary Allstate Finance Company, LLC (“AFC”) sold agent loans with a fair value of $419 million to affiliate Allstate Finance Company Agency Loans LLC (“AFCAL”) and AFCAL used the loans as collateral in the issuance of notes. On December 16, 2019, investors in the notes approved redemption of the original notes and AFCAL issued replacement notes at new terms. Concurrent with redemption, AFC sold agent loans with a fair value of $222 million to AFCAL and AFCAL used the loans as collateral in the issuance of additional notes. Investors in the notes are as follows:



($ in millions)	December 31, 2019 ⁽²⁾		December 31, 2018 ⁽³⁾
Class A Notes ⁽¹⁾
Allstate New Jersey Insurance Company	$	83	$	77
American Heritage Life Insurance Company	59		37
Allstate Assurance Company	33		19
First Colonial Insurance Company	9		7
Allstate Fire & Casualty Insurance Company	7		—
Allstate Property and Casualty Insurance Company	6		—
Allstate Indemnity Company	4		—
Esurance Insurance Company	4		—
North Light Specialty Insurance Company	3		—
Allstate Vehicle and Property Insurance Company	2		—
Allstate New Jersey Property and Casualty Insurance Company	2		—
Esurance Property and Casualty Insurance Company	2		—
Subtotal - Class A	214		140
Class B Deferrable Notes
Allstate Life Insurance Company	214		140
Class C Deferrable Notes
Allstate Life Insurance Company	168		110
Subordinated Notes
Allstate Life Insurance Company	45		29
Total	$	641	$	419

_______________


⁽¹⁾	As of December 31, 2019, $74 million of these notes have an annual interest rate of 3.16% and $140 million have an annual interest rate of 3.36%. As of December 31, 2018, all notes had an annual interest rate of 3.25%.


⁽²⁾	Notes due March 10, 2037.


⁽³⁾	Notes due March 10, 2034.

AFCAL is a VIE established as a bankruptcy-remote entity whose assets are isolated from those of ALIC and are not available to ALIC’s creditors. ALIC is the primary beneficiary since ALIC has control over the significant activities of AFCAL, the obligation to absorb significant losses and the rights to residual returns. Therefore, AFCAL is included in ALIC’s consolidated financial statements. Transactions between ALIC, AFC and AFCAL are eliminated in consolidation. The Company’s Consolidated Statements of Financial Position included $612 million of agent loans, $1 million of cash and $214 million of notes due to related parties as of December 31, 2019 and $407 million of agent loans, $2 million of cash and $140 million of notes due to related parties as of December 31, 2018 associated with AFCAL.

The Company incurred interest expense related to these notes of $5 million in each year 2019, 2018 and 2017.

Reinsurance

The Company has coinsurance reinsurance agreements with its unconsolidated affiliate American Heritage Life Insurance Company (“AHL”) whereby the Company assumes certain interest-sensitive life insurance, fixed annuity contracts and accident and health insurance policies. The amounts assumed are disclosed in Note 9.

Effective January 1, 2017, ALIC entered into a coinsurance reinsurance agreement with AAC to assume certain term life insurance policies. In connection with the agreement, the Company recorded cash of $20 million, DAC of $45 million, other assets of $11 million, reserve for life-contingent contract benefits of $24 million and deferred tax liabilities of $18 million. The $34 million gain on the transaction was recorded as an increase to additional capital paid-in since the transaction was between entities under common control.

ALIC enters into certain intercompany reinsurance transactions with its wholly owned subsidiaries. ALIC enters into these transactions in order to maintain underwriting control and spread risk among various legal entities. These reinsurance agreements have been approved by the appropriate regulatory authorities. All significant intercompany transactions have been eliminated in consolidation.

Broker-Dealer agreement

The Company receives distribution services from Allstate Financial Services, LLC, an affiliated broker-dealer company, for certain annuity and variable life insurance contracts sold by Allstate exclusive agencies and exclusive financial specialists. For these services, the Company incurred commission and other distribution expenses of $3 million, $3 million and $9 million of 2019, 2018 and 2017, respectively.

Structured settlement annuities

The Company previously issued structured settlement annuities, a type of immediate annuity, to fund structured settlements in matters involving AIC. In most cases, these annuities were issued under a “qualified assignment” whereby Allstate Assignment Company and prior to July 1, 2001 Allstate Settlement Corporation (“ASC”), both wholly owned subsidiaries of ALIC, purchased annuities from ALIC and assumed AIC’s obligation to make future payments.

AIC issued surety bonds to guarantee the payment of structured settlement benefits assumed by ASC (from both AIC and non-related parties) and funded by certain annuity contracts issued by the Company through June 30, 2001. ASC entered into a General Indemnity Agreement pursuant to which it indemnified AIC for any liabilities associated with the surety bonds and gave AIC certain collateral security rights with respect to the annuities and certain other rights in the event of any defaults covered by the surety bonds. ALIC guaranteed the payment of structured settlement benefits on all contracts issued on or after July 1, 2001. Reserves recorded by the Company for annuities that are guaranteed by the surety bonds of AIC were $4.57 billion and $4.59 billion as of December 31, 2019 and 2018, respectively.

Income taxes

The Company is a party to a federal income tax allocation agreement with the Corporation (see Note 12).

Surplus notes

On December 2, 2016, the Company purchased for cash a $40 million 3.07% surplus note due December 2, 2036 that was issued by AAC. No payment of principal or interest is permitted on the surplus note without the written approval from the proper regulatory authority. The regulatory authority could prohibit the payment of interest and principal on the surplus notes if certain statutory capital requirements are not met. The surplus note is classified as fixed income securities on the Consolidated Statements of Financial Position. The Company recorded investment income on this surplus note of $1 million in each year 2019, 2018 and 2017.

Liquidity and intercompany loan agreements

The Company is party to an Amended and Restated Intercompany Liquidity Agreement (“Liquidity Agreement”) with certain of its affiliates, which include, but are not limited to, AIC, AAC and the Corporation. The Liquidity Agreement allows for short-term advances of funds to be made between parties for liquidity and other general corporate purposes. The Liquidity Agreement does not establish a commitment to advance funds on the part of any party. The Company and AIC each serve as a lender and borrower, AAC and certain other affiliates serve only as borrowers, and the Corporation serves only as a lender. The maximum amount of advances each party may make or receive is limited to $1 billion. Netting or offsetting of advances made and received is not permitted. Advances between the parties are required to have specified due dates less than or equal to 364 days from the date of the advance and be payable upon demand by written request from the lender at least 10 business days prior to the demand date. The borrower may make prepayments of the outstanding principal balance of an advance without penalty. Advances will bear interest equal to or greater than the rate applicable to 30-day commercial paper issued by the Corporation on the date the advance is made with an adjustment on the first day of each month thereafter. The Company had no amounts outstanding under the Liquidity Agreement as of December 31, 2019 or 2018.

In addition to the Liquidity Agreement, the Company has an intercompany loan agreement with the Corporation. The amount of intercompany loans available to the Company is at the discretion of the Corporation. The maximum amount of loans the Corporation will have outstanding to all its eligible subsidiaries at any given point in time is limited to $1 billion. The Corporation may use commercial paper borrowings, bank lines of credit and securities lending to fund intercompany borrowings. The Company had no amounts outstanding under the intercompany loan agreement as of December 31, 2019 or 2018.

Road Bay Investments, LLC (“RBI”), a consolidated subsidiary of ALIC, has a Revolving Loan Credit Agreement (“Credit Agreement”) with AHL, according to which AHL agreed to extend revolving credit loans to RBI. As security for its obligations under the Credit Agreement, RBI entered into a Pledge and Security Agreement with AHL, according to which RBI agreed to grant a pledge of and security interest in RBI’s right, title, and interest in certain assets of RBI. The Company had no amounts outstanding under the Credit Agreement as of December 31, 2019 or 2018.

Capital support agreement

The Company has a capital support agreement with AIC. Under the terms of this agreement, AIC agrees to provide capital to maintain the amount of statutory capital and surplus necessary to maintain a company action level risk-based capital (“RBC”) ratio of at least 150%. AIC’s obligation to provide capital to the Company under the agreement is limited to an aggregate amount of $1 billion. In exchange for providing this capital, the Company will pay AIC an annual commitment fee of 1% of the amount of the Capital and Surplus maximum that remains available on January 1 of such year. The Company or AIC have the right to terminate this agreement when: 1) the Company qualifies for a financial strength rating from S&P, Moody’s or A.M. Best, without giving weight to the existence of this agreement, that is the same or better than its rating with such support; 2) the Company’s RBC ratio is at least 300%; or 3) AIC no longer directly or indirectly owns at least 50% of the voting stock of the Company. During 2019 and 2018, no capital had been provided by AIC under this agreement.

External financing agreement

In January 2017, ALIC Reinsurance Company (“ALIC Re”), a wholly owned subsidiary of the Company, entered into a master transaction agreement with Bueller Financing LLC (“Bueller”), an external financing provider. In accordance with the agreement, Bueller issued a variable funding puttable note (“credit-linked note”) that is held in a trust. The credit-linked note can be put back to Bueller for cash in the event certain ALIC Re statutory reserves and capital are depleted. The balance of the credit-linked note will vary based on the statutory reserve balance with a maximum value of $1.75 billion. The impacts of the agreement are eliminated in consolidation and have no impact on the Consolidated Statements of Financial Position.

Dividends

The Company paid dividends of $75 million, $250 million and $600 million to AIC in the form of cash in 2019, 2018, and 2017, respectively.

Investments - Gross unrealized losses by unrealized loss position and credit quality (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Investment [Line Items]
Fixed income securities with unrealized loss position less than 20% of amortized cost (1) (2)	$ (22,000,000)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost (3) (4)	(19,000,000)
Total unrealized losses	(41,000,000)
Available for sale securities, unrealized losses having loss of twenty percent or higher, greater than 12 months	0
Investment grade
Investment [Line Items]
Fixed income securities with unrealized loss position less than 20% of amortized cost (1) (2)	(7,000,000)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost (3) (4)	(13,000,000)
Total unrealized losses	(20,000,000)	$ (268,000,000)
Below investment grade
Investment [Line Items]
Fixed income securities with unrealized loss position less than 20% of amortized cost (1) (2)	(15,000,000)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost (3) (4)	(6,000,000)
Total unrealized losses	(21,000,000)	$ (121,000,000)
Available for sale securities, unrealized losses having loss of less than twenty percent, less than 12 months	$ (6,000,000)

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)	$ 837	$ (448)	$ 25
Tax
Other comprehensive income (loss)	(175)	94	(9)
After- tax
Other comprehensive income (loss), after-tax	662	(354)	16
Accumulated Net Investment Gain (Loss)
Pre- tax
Unrealized net holding gains and losses arising during the period, net of related offsets	878	(483)	51
Less: reclassification adjustment of realized capital gains and losses	19	(35)	43
Other comprehensive income (loss)	859	(448)	8
Tax
Unrealized net holding gains and losses arising during the period, net of related offsets	(184)	101	(18)
Less: reclassification adjustment of realized capital gains and losses	(4)	7	(15)
Other comprehensive income (loss)	(180)	94	(3)
After- tax
Unrealized net holding gains and losses arising during the period, net of related offsets	694	(382)	33
Less: reclassification adjustment of realized capital gains and losses	15	(28)	28
Other comprehensive income (loss), after-tax	679	(354)	5
Accumulated Foreign Currency Adjustment
Pre- tax
Other comprehensive income (loss)	(22)	0	17
Tax
Other comprehensive income (loss)	5	0	(6)
After- tax
Other comprehensive income (loss), after-tax	$ (17)	$ 0	$ 11

Related Party Transactions - Narrative and Other (Details) - USD ($)			12 Months Ended
	Jan. 01, 2017	Dec. 02, 2016	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 16, 2019	Dec. 31, 2016	Dec. 22, 2016
Related Party Transactions
Allocation of operating expenses			$ 211,000,000	$ 235,000,000	$ 243,000,000
Cash			43,000,000	52,000,000	145,000,000		$ 138,000,000
Notes due to related parties			214,000,000	140,000,000
Interest expense			5,000,000		5,000,000
Reserves recorded for annuities			11,272,000,000	11,239,000,000
Surplus note			4,406,000,000	5,444,000,000	4,698,000,000
Liquidity agreement
Related Party Transactions
Amount of loan outstanding under agreement			0	0
Liquidity agreement \| Maximum
Related Party Transactions
Amount available for borrowings under the agreement			$ 1,000,000,000
Advances Maturity Period			364 days
Liquidity agreement \| Minimum
Related Party Transactions
Notice period for payables on demand			10 days
Intercompany loan agreement
Related Party Transactions
Amount of loan outstanding under agreement			$ 0	0
Intercompany loan agreement \| Maximum
Related Party Transactions
Amount available for borrowings under the agreement			1,000,000,000
Revolving loan credit agreement
Related Party Transactions
Amount of loan outstanding under agreement			0	0
Capital support agreement
Related Party Transactions
Amount of loan outstanding under agreement			$ 0	0
Commitment fee as a percentage of the amount of the capital and surplus maximum that remains available at the beginning of the period			1.00%
Capital support agreement \| Maximum
Related Party Transactions
Amount available for borrowings under the agreement			$ 1,000,000,000
Capital support agreement \| Minimum
Related Party Transactions
Percentage of risk-based capital ratio			150.00%
Minimum risk-based capital ratio at which agreement will be terminated (as a percent)			300.00%
Voting stock to be held as per agreement (as a percent)			50.00%
Structured settlement annuities \| AIC
Related Party Transactions
Reserves recorded for annuities			$ 4,570,000,000	4,590,000,000
Affiliate
Related Party Transactions
Fee and Commission Expenses			3,000,000	3,000,000	9,000,000
Allstate Financial Services, LLC
Related Party Transactions
Payments of dividends			75,000,000	250,000,000	600,000,000
Allstate Finance Company Agency Loans LLC \| Beneficial Owner
Related Party Transactions
Agent loans			612,000,000	407,000,000
Cash			1,000,000	2,000,000
Notes due to related parties			214,000,000	140,000,000
AAC \| Subsidiary of Common Parent
Related Party Transactions
Notes payable interest rate (as a percent)		3.07%
Interest income, related party			1,000,000	1,000,000	1,000,000
Surplus note		$ 40,000,000
AAC \| Affiliate
Related Party Transactions
Proceeds from coinsurance reinsurance agreement	$ 20,000,000
DAC, additions	45,000,000
Additions to other assets, amount	11,000,000
Reinsurance, reserve for life-contingent contract benefits	24,000,000
Deferred tax liabilities	18,000,000
Collateralized Loan Obligations
Related Party Transactions
Agent loans, fair value						$ 222,000,000		$ 419,000,000
Collateralized Loan Obligations \| Affiliate
Related Party Transactions
Agent loans, fair value			641,000,000
Additional capital paid-in
Related Party Transactions
Gain (Loss) on the transaction			0	$ 0	$ (34,000,000)
Additional capital paid-in \| AAC \| Affiliate
Related Party Transactions
Gain (Loss) on the transaction	$ (34,000,000)
Hybrid Instrument \| Subsidiary of Common Parent \| ALIC Reinsurance Company
Related Party Transactions
Credit derivative, maximum exposure, undiscounted			$ 1,750,000,000

General (Tables)

12 Months Ended

Dec. 31, 2019

General

Summary of premiums and contract charges by product

The following table summarizes premiums and contract charges by product.



($ in millions)	2019		2018		2017
Premiums
Traditional life insurance	$	557	$	582	$	579
Accident and health insurance	120		122		111
Total premiums	677		704		690

Contract charges
Interest-sensitive life insurance	669		680		689
Fixed annuities	13		15		14
Total contract charges	682		695		703
Total premiums and contract charges	$	1,359	$	1,399	$	1,393

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	$ 1,163	$ (917)	$ 373
Amounts recognized for:
Insurance reserves	(126)	315	(315)
DAC and DSI	(178)	154	(49)
Amounts recognized	(304)	469	(364)
Deferred income taxes	(180)	94	145
Increase (decrease) in unrealized net capital gains and losses, after-tax	679	(354)	154
EMA limited partnerships
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	(2)	(1)	3
Fixed income securities
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	1,165	(914)	147
Equity securities
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	0	0	226
Derivative instruments
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	$ 0	$ (2)	$ (3)
Accounting Standards Update 2016-01
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Equity securities				$ 308

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	$	—	$	3	$	—	$	—	$	3
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 estimated losses on mortgage loans	$	3	$	—	$	—	$	—	$	3
Allowance for estimated losses on agent loans	2		—		—		—		2

Year ended December 31, 2017

Allowance for estimated losses on mortgage loans	$	3	$	1	$	—	$	1	$	3
Allowance for estimated losses on agent loans	2		—		—		—		2

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	$ 0
Additions charged to costs and expenses	3
Additions other additions	0
Deductions	0
Balance as of end of period	3	$ 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	2
Additions charged to costs and expenses	1	0	0
Additions other additions	0	0	0
Deductions	0	0	0
Balance as of end of period	$ 3	$ 2	$ 2

CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY - USD ($) $ in Millions	Total	Common stock	Additional capital paid-in	Retained income	Accumulated other comprehensive income
Balance, beginning of year at Dec. 31, 2016			$ 1,990	$ 3,736	$ 678
Balance, beginning of year at Dec. 31, 2016			1,990	3,736	678
Increase (decrease) in equity
Net income	$ 996			996
Dividends				(600)
Reclassification of tax effects due to change in accounting principle				(151)	151
Gain on reinsurance with an affiliate			34
Change in unrealized net capital gains and losses	5				5
Change in unrealized foreign currency translation adjustments	11				11
Balance, end of year at Dec. 31, 2017	6,855	$ 5	2,024	3,981	845
Increase (decrease) in equity
Cumulative effect of change in accounting principle	0			0
Net income	365			365
Dividends				(250)
Reclassification of tax effects due to change in accounting principle				0	0
Gain on reinsurance with an affiliate			0
Change in unrealized net capital gains and losses	(354)				(354)
Change in unrealized foreign currency translation adjustments	0				0
Balance, end of year at Dec. 31, 2018	6,692	5	2,024	4,410	253
Increase (decrease) in equity
Net income	530			530
Dividends				(75)
Reclassification of tax effects due to change in accounting principle				0	0
Gain on reinsurance with an affiliate			0
Change in unrealized net capital gains and losses	679				679
Change in unrealized foreign currency translation adjustments	(17)				(17)
Balance, end of year at Dec. 31, 2019	$ 7,809	$ 5	$ 2,024	$ 4,865	$ 915

- Definition

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

+ References + Details

Quarterly Results (unaudited) (Tables)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Schedule of quarterly results



($ in millions)	First Quarter				Second Quarter				Third Quarter				Fourth Quarter
	2019		2018		2019		2018		2019		2018		2019		2018
Revenues	$	816	$	736	$	814	$	783	$	742	$	787	$	781	$	541
Net income (loss)	164		90		157		134		80		193		129		(52		)

Investments (Tables)

12 Months Ended

Dec. 31, 2019

Investments [Abstract]

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

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



($ in millions)	Amortized cost		Gross unrealized					Fair value
	Amortized cost		Gains		Losses			Fair value
December 31, 2019
U.S. government and agencies	$	848	$	34	$	—		$	882
Municipal	1,483		279		(7		)	1,755
Corporate	17,301		1,170		(30		)	18,441
Foreign government	142		7		—			149
ABS	316		4		(3		)	317
MBS	127		55		(1		)	181
Total fixed income securities	$	20,217	$	1,549	$	(41	)	$	21,725

December 31, 2018
U.S. government and agencies	$	740	$	33	$	—		$	773
Municipal	1,997		202		(4		)	2,195
Corporate	17,534		434		(381		)	17,587
Foreign government	170		9		—			179
ABS	429		3		(3		)	429
MBS	187		51		(1		)	237
Total fixed income securities	$	21,057	$	732	$	(389	)	$	21,400

Schedule for fixed income securities based on contractual maturities

The scheduled maturities for fixed income securities are as follows:



($ in millions)	As of December 31, 2019
($ in millions)	Amortized cost		Fair value
Due in one year or less	$	1,360	$	1,374
Due after one year through five years	7,690		7,994
Due after five years through ten years	7,455		7,955
Due after ten years	3,269		3,904
	19,774		21,227
ABS and MBS	443		498
Total	$	20,217	$	21,725

Schedule of net investment income

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



($ in millions)	2019			2018			2017
Fixed income securities	$	963		$	991		$	1,058
Mortgage loans	190			188			182
Equity securities	29			39			48
Limited partnership interests	175			327			457
Short-term investments	31			21			9
Policy loans	34			31			31
Other	93			91			79
Investment income, before expense	1,515			1,688			1,864
Investment expense	(104		)	(103		)	(87		)
Net investment income	$	1,411		$	1,585		$	1,777

Schedule of realized capital gains and losses by asset type

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



($ in millions)	2019			2018			2017
Fixed income securities	$	25		$	(40	)	$	(6	)
Mortgage loans	—			2			1
Equity securities	276			(124		)	21
Limited partnership interests	43			(22		)	46
Derivatives	11			10			(16		)
Other	(14		)	(1		)	3
Realized capital gains (losses)	$	341		$	(175	)	$	49

Schedule of realized capital gains and losses by transaction type

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



($ in millions)	2019			2018			2017
Impairment write-downs	$	(21	)	$	(9	)	$	(41	)
Change in intent write-downs	—			—			(4		)
Net OTTI losses recognized in earnings	(21		)	(9		)	(45		)
Sales	54			(27		)	110
Valuation of equity investments ⁽¹⁾	297			(146		)	—
Valuation and settlements of derivative instruments	11			7			(16		)
Realized capital gains (losses)	$	341		$	(175	)	$	49

_______________


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

Schedule of valuation changes

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.



	For the years ended December 31,
($ in millions)	2019		2018
Equity securities	$	216	$	(78	)
Limited partnership interests carried at fair value	57		113
Total	$	273	$	35

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

OTTI losses by asset type for the years ended December 31 are as follows:



($ 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	)	$	—		$	(1	)
Corporate	(1		)	(1		)	(2		)	(1		)	—			(1		)	(7		)	3			(4		)
ABS	(1		)	—			(1		)	—			(1		)	(1		)	(1		)	(1		)	(2		)
MBS	(4		)	2			(2		)	(5		)	(1		)	(6		)	(9		)	(1		)	(10		)
Total fixed income securities	(8		)	3			(5		)	(6		)	(2		)	(8		)	(18		)	1			(17		)
Mortgage loans	—			—			—			—			—			—			(1		)	—			(1		)
Equity securities	—			—			—			—			—			—			(16		)	—			(16		)
Limited partnership interests	(2		)	—			(2		)	—			—			—			(9		)	—			(9		)
Other	(14		)	—			(14		)	(1		)	—			(1		)	(2		)	—			(2		)
OTTI losses	$	(24	)	$	3		$	(21	)	$	(7	)	$	(2	)	$	(9	)	$	(46	)	$	1		$	(45	)

Schedule of other-than-temporary impairment losses on fixed income securities included in accumulated other comprehensive income

The total amount of OTTI losses included in AOCI at the time of impairment for fixed income securities, which were not included in earnings, are presented in the following table.



($ in millions)	December 31, 2019			December 31, 2018
Municipal	$	(6	)	$	(4	)
Corporate	—			(1		)
ABS	(4		)	(5		)
MBS	(30		)	(34		)
Total⁽¹⁾	$	(40	)	$	(44	)

____________


⁽¹⁾	The amounts exclude $92 million and $101 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 rollforwards of the cumulative credit losses recognized in earnings for fixed income securities held

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



($ in millions)	2019			2018			2017
Beginning balance	$	(123	)	$	(138	)	$	(176	)
Additional credit loss for securities previously other-than-temporarily impaired	(4		)	(7		)	(9		)
Additional credit loss for securities not previously other-than-temporarily impaired	(1		)	(1		)	(8		)
Reduction in credit loss for securities disposed or collected	25			22			54
Change in credit loss due to accretion of increase in cash flows	—			1			1
Ending balance	$	(103	)	$	(123	)	$	(138	)

Schedule of unrealized net capital gains and losses included in accumulated other comprehensive income

Unrealized net capital gains and losses included in AOCI are as follows:



($ in millions)	Fair value		Gross unrealized					Unrealized net gains (losses)
December 31, 2019	Fair value		Gains		Losses			Unrealized net gains (losses)
Fixed income securities	$	21,725	$	1,549	$	(41	)	$	1,508
Short-term investments	1,191		—		—			—
Derivative instruments	—		—		—			—
EMA limited partnerships ⁽¹⁾								(2		)
Unrealized net capital gains and losses, pre-tax								1,506
Amounts recognized for:
Insurance reserves ⁽²⁾								(126		)
DAC and DSI ⁽³⁾								(213		)
Amounts recognized								(339		)
Deferred income taxes								(245		)
Unrealized net capital gains and losses, after-tax								$	922

December 31, 2018
Fixed income securities	$	21,400	$	732	$	(389	)	$	343
Short-term investments	810		—		—			—
Derivative instruments	—		—		—			—
EMA limited partnerships								—
Unrealized net capital gains and losses, pre-tax								343
Amounts recognized for:
Insurance reserves								—
DAC and DSI								(35		)
Amounts recognized								(35		)
Deferred income taxes								(65		)
Unrealized net capital gains and losses, after-tax								$	243

____________


⁽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.

Schedule of change in unrealized net capital gains and losses

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



($ in millions)	2019			2018			2017
Fixed income securities	$	1,165		$	(914	)	$	147
Equity securities ⁽¹⁾	—			—			226
Derivative instruments	—			(2		)	(3		)
EMA limited partnerships	(2		)	(1		)	3
Total	1,163			(917		)	373
Amounts recognized for:
Insurance reserves	(126		)	315			(315		)
DAC and DSI	(178		)	154			(49		)
Amounts recognized	(304		)	469			(364		)
Deferred income taxes	(180		)	94			145
Increase (decrease) in unrealized net capital gains and losses, after-tax	$	679		$	(354	)	$	154

_______________


⁽¹⁾	Upon adoption of the recognition and measurement accounting standard on January 1, 2018, $308 million of pre-tax unrealized net capital gains for equity securities were reclassified from AOCI to retained income.

Summary of gross unrealized losses and fair value of fixed income and equity securities by length of time

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



($ in millions)	Less than 12 months						12 months or more						Total unrealized losses
	Number of issues	Fair value		Unrealized losses			Number of issues	Fair value		Unrealized losses
	Number of issues	Fair value		Unrealized losses			Number of issues	Fair value		Unrealized losses
December 31, 2019
Fixed income securities
U.S. government and agencies	6	$	74	$	—		—	$	—	$	—		$	—
Municipal	4	22		(5		)	1	14		(2		)	(7		)
Corporate	92	504		(8		)	43	237		(22		)	(30		)
ABS	22	61		(1		)	5	19		(2		)	(3		)
MBS	8	1		—			22	5		(1		)	(1		)
Total fixed income securities	132	$	662	$	(14	)	71	$	275	$	(27	)	$	(41	)
Investment grade fixed income securities	85	$	524	$	(3	)	39	$	152	$	(17	)	$	(20	)
Below investment grade fixed income securities	47	138		(11		)	32	123		(10		)	(21		)
Total fixed income securities	132	$	662	$	(14	)	71	$	275	$	(27	)	$	(41	)

December 31, 2018
Fixed income securities
U.S. government and agencies	2	$	6	$	—		1	$	1	$	—		$	—
Municipal	38	98		(1		)	5	26		(3		)	(4		)
Corporate	1,261	6,799		(218		)	370	2,633		(163		)	(381		)
ABS	30	167		(1		)	11	31		(2		)	(3		)
MBS	127	18		—			49	10		(1		)	(1		)
Total fixed income securities	1,458	$	7,088	$	(220	)	436	$	2,701	$	(169	)	$	(389	)
Investment grade fixed income securities	948	$	5,255	$	(121	)	388	$	2,551	$	(147	)	$	(268	)
Below investment grade fixed income securities	510	1,833		(99		)	48	150		(22		)	(121		)
Total fixed income securities	1,458	$	7,088	$	(220	)	436	$	2,701	$	(169	)	$	(389	)

The following table summarizes 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)}	$	(7	)	$	(15	)	$	(22	)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost^{(3) (4)}	(13		)	(6		)	(19		)
Total unrealized losses	$	(20	)	$	(21	)	$	(41	)

_______________


⁽¹⁾	Below investment grade fixed income securities include $6 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

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



(% of mortgage loan portfolio carrying value)	2019		2018
Texas	16.8	%	15.6	%
California	14.1		15.2
Illinois	8.0		8.5
Florida	6.7		6.4
New Jersey	6.0		7.2

Types of property collateralizing the mortgage loans

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



(% of mortgage loan portfolio carrying value)	2019		2018
Apartment complex	35.6	%	33.5	%
Office buildings	22.4		23.9
Warehouse	16.2		15.9
Retail	14.3		15.0
Other	11.5		11.7
Total	100.0	%	100.0	%

Contractual maturities of the commercial mortgage loan portfolio

The contractual maturities of the mortgage loan portfolio as of December 31, 2019 are as follows:



($ in millions)	Number of loans	Carrying value		Percent
2020	9	$	52	1.3	%
2021	35	371		9.3
2022	24	336		8.4
2023	49	684		17.2
Thereafter	147	2,545		63.8
Total	264	$	3,988	100.0	%

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

The following table reflects the carrying value of non-impaired 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	$	16	$	29	$	6	$	15	$	21
1.0 - 1.25	161		—		161		221		—		221
1.26 - 1.50	1,057		9		1,066		1,048		—		1,048
Above 1.50	2,696		28		2,724		2,659		42		2,701
Total non-impaired mortgage loans	$	3,927	$	53	$	3,980	$	3,934	$	57	$	3,991

Schedule of net carrying value of impaired mortgage loans

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



($ 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

Schedule of rollforward of the valuation allowance on impaired mortgage loans

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



($ in millions)	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

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



(% of municipal bond portfolio carrying value)	2019		2018
Texas	17.8	%	17.6	%
California	15.0		15.0
Oregon	12.6		9.8
New York	7.0		5.7
New Jersey	6.7		5.0
Illinois	6.3		4.6

Schedule of other investments

The following table summarizes other investments by asset type.



($ in millions)	December 31, 2019		December 31, 2018
Agent loans	$	666	$	620
Bank loans	344		422
Real estate	292		228
Derivatives and other	125		30
Total	$	1,427	$	1,300

Income Taxes - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Components of the deferred income tax assets and liabilities
Unrecognized tax benefits	$ 14	$ 14	$ 2
Unrecognized tax benefits is reasonably possible	2
Income taxes paid	62
Income tax refunds received		30	$ 1
Current income tax receivable	$ 29	$ 78

Summary of Significant Accounting Policies - Recognition of Income on Funds is Delayed (Details)	12 Months Ended
	Dec. 31, 2019
Private equity/debt funds, real estate funds and tax credit funds
Investments
Period over which recognition of income on funds is delayed	3 months

Reserve for Life-Contingent Contract Benefits and Contractholder Funds - Liabilities for guarantees (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Liabilities for guarantees:
Liabilities for Guarantees on Long-Duration Contracts, Incurred Benefits	$ 30	$ 37
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Balance at beginning of period	443	369
Less reinsurance recoverables	185	146
Net balance at beginning of period	258	223
Paid guarantee benefits	(3)	(2)
Net change	27	35
Net balance at end of period	285	258
Plus reinsurance recoverables	133	185
Balance at end of period	418	443
Liability for guarantees related to death benefits and interest-sensitive life products
Liabilities for guarantees:
Liabilities for Guarantees on Long-Duration Contracts, Incurred Benefits	18	24
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Balance at beginning of period	307	261
Less reinsurance recoverables	111	87
Net balance at beginning of period	196	174
Paid guarantee benefits	(3)	(2)
Net change	15	22
Net balance at end of period	211	196
Plus reinsurance recoverables	81	111
Balance at end of period	292	307
Liability for guarantees related to income benefits
Liabilities for guarantees:
Liabilities for Guarantees on Long-Duration Contracts, Incurred Benefits	0	0
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Balance at beginning of period	38	28
Less reinsurance recoverables	35	25
Net balance at beginning of period	3	3
Paid guarantee benefits	0	0
Net change	0	0
Net balance at end of period	3	3
Plus reinsurance recoverables	20	35
Balance at end of period	23	38
Liability for guarantees related to accumulation and withdrawal benefits
Liabilities for guarantees:
Liabilities for Guarantees on Long-Duration Contracts, Incurred Benefits	12	13
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Balance at beginning of period	98	80
Less reinsurance recoverables	39	34
Net balance at beginning of period	59	46
Paid guarantee benefits	0	0
Net change	12	13
Net balance at end of period	71	59
Plus reinsurance recoverables	32	39
Balance at end of period	$ 103	$ 98

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
Life insurance in force, Gross amount	$ 107,014	$ 113,202	$ 114,354
Life insurance in force, Ceded to other companies	75,159	83,166	89,603
Life insurance in force, Assumed from other companies	284,518	301,316	321,331
Life insurance in force, Net amount	$ 316,373	$ 331,352	$ 346,082
Life insurance in force, Percentage of amount assumed to net	89.90%	90.90%	92.80%
Premiums and contract charges:
Premiums and contract charges, Goss amount	$ 748	$ 743	$ 734
Premiums and contract charges, Ceded to other companies	319	326	340
Premiums and contract charges, Assumed from other companies	930	982	999
Premiums and contract charges, Net amount	$ 1,359	$ 1,399	$ 1,393
Premiums and contract charges, Percentage of amount assumed to net	68.40%	70.20%	71.70%
Reinsurance or coinsurance income netted against premiums ceded	$ 0	$ 0	$ 0
Life insurance
Premiums and contract charges:
Premiums and contract charges, Goss amount	683	679	677
Premiums and contract charges, Ceded to other companies	302	308	320
Premiums and contract charges, Assumed from other companies	858	906	925
Premiums and contract charges, Net amount	$ 1,239	$ 1,277	$ 1,282
Premiums and contract charges, Percentage of amount assumed to net	69.20%	70.90%	72.20%
Accident and health insurance
Premiums and contract charges:
Premiums and contract charges, Goss amount	$ 65	$ 64	$ 57
Premiums and contract charges, Ceded to other companies	17	18	20
Premiums and contract charges, Assumed from other companies	72	76	74
Premiums and contract charges, Net amount	$ 120	$ 122	$ 111
Premiums and contract charges, Percentage of amount assumed to net	60.00%	62.30%	66.70%

Fair Value of Assets and Liabilities - Assets and liabilities measured at fair value (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets
Fixed income securities	$ 21,725	$ 21,400
Equity securities	1,469	1,325
Short-term investments	1,191	810
Other investments:
Other investments: Free-standing derivatives		1	$ 1
Counterparty and cash collateral netting	(10)	(8)
Separate account assets	3,009	2,783
Derivative asset, fair value	$ (10)	$ (8)
% of total assets at fair value	0.00%	0.00%
Total	$ 28,291	$ 27,128
Liabilities
Counterparty and cash collateral netting	3	2
Total liabilities at fair value, Counterparty and cash collateral netting	$ 3	$ 2
% of total liabilities at fair value	(0.60%)	(0.90%)
Commitments to invest in limited partnership interests	$ 1,063	$ 1,195
Fair value
Assets
Fixed income securities	21,725	21,400
Equity securities	1,469	1,325
Short-term investments	1,191	810
Other investments:
Other investments: Free-standing derivatives	124	23
Separate account assets	3,009	2,783
Total assets at fair value	$ 27,518	$ 26,341
% of total assets at fair value	100.00%	100.00%
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$ (427)	$ (223)
Other liabilities: Free-standing derivatives	(62)	(5)
Total recurring basis liabilities at fair value	$ (489)	$ (228)
% of total liabilities at fair value	100.00%	100.00%
Limited partnership interests
Liabilities
Commitments to invest in limited partnership interests	$ 201
U.S. government and agencies
Assets
Fixed income securities	882	$ 773
U.S. government and agencies \| Fair value
Assets
Fixed income securities	882	773
Municipal
Assets
Fixed income securities	1,755	2,195
Municipal \| Fair value
Assets
Fixed income securities	1,755	2,195
Corporate - public \| Fair value
Assets
Fixed income securities	12,802	11,924
Corporate - privately placed \| Fair value
Assets
Fixed income securities	5,639	5,663
Foreign government
Assets
Fixed income securities	149	179
Foreign government \| Fair value
Assets
Fixed income securities	149	179
Asset-backed securities
Assets
Fixed income securities	317	429
Asset-backed securities \| Fair value
Assets
Fixed income securities	317	429
MBS
Assets
Fixed income securities	181	237
MBS \| Fair value
Assets
Fixed income securities	181	237
Quoted prices in active markets for identical assets (Level 1)
Assets
Fixed income securities	590	493
Equity securities	1,340	1,182
Short-term investments	493	443
Other investments:
Other investments: Free-standing derivatives	0	0
Separate account assets	3,009	2,783
Total assets at fair value	$ 5,432	$ 4,901
% of total assets at fair value	19.70%	18.60%
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$ 0	$ 0
Other liabilities: Free-standing derivatives	0	0
Total recurring basis liabilities at fair value	$ 0	$ 0
% of total liabilities at fair value	0.00%	0.00%
Quoted prices in active markets for identical assets (Level 1) \| U.S. government and agencies
Assets
Fixed income securities	$ 590	$ 493
Quoted prices in active markets for identical assets (Level 1) \| Municipal
Assets
Fixed income securities	0	0
Quoted prices in active markets for identical assets (Level 1) \| Corporate - public
Assets
Fixed income securities	0	0
Quoted prices in active markets for identical assets (Level 1) \| Corporate - privately placed
Assets
Fixed income securities	0	0
Quoted prices in active markets for identical assets (Level 1) \| Foreign government
Assets
Fixed income securities	0	0
Quoted prices in active markets for identical assets (Level 1) \| Asset-backed securities
Assets
Fixed income securities	0	0
Quoted prices in active markets for identical assets (Level 1) \| MBS
Assets
Fixed income securities	0	0
Significant other observable inputs (Level 2)
Assets
Fixed income securities	20,927	20,716
Equity securities	13	14
Short-term investments	698	367
Other investments:
Other investments: Free-standing derivatives	134	30
Separate account assets	0	0
Total assets at fair value	$ 21,772	$ 21,127
% of total assets at fair value	79.10%	80.20%
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$ 0	$ 0
Other liabilities: Free-standing derivatives	(65)	(7)
Total recurring basis liabilities at fair value	$ (65)	$ (7)
% of total liabilities at fair value	13.30%	3.10%
Significant other observable inputs (Level 2) \| U.S. government and agencies
Assets
Fixed income securities	$ 292	$ 280
Significant other observable inputs (Level 2) \| Municipal
Assets
Fixed income securities	1,715	2,156
Significant other observable inputs (Level 2) \| Corporate - public
Assets
Fixed income securities	12,777	11,891
Significant other observable inputs (Level 2) \| Corporate - privately placed
Assets
Fixed income securities	5,517	5,566
Significant other observable inputs (Level 2) \| Foreign government
Assets
Fixed income securities	149	179
Significant other observable inputs (Level 2) \| Asset-backed securities
Assets
Fixed income securities	301	407
Significant other observable inputs (Level 2) \| MBS
Assets
Fixed income securities	176	237
Significant unobservable inputs (Level 3)
Assets
Fixed income securities	208	191
Equity securities	116	129
Short-term investments	0	0
Other investments:
Other investments: Free-standing derivatives	0	1
Separate account assets	0	0
Total assets at fair value	$ 324	$ 321
% of total assets at fair value	1.20%	1.20%
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$ (427)	$ (223)
Other liabilities: Free-standing derivatives	0	0
Total recurring basis liabilities at fair value	$ (427)	$ (223)
% of total liabilities at fair value	87.30%	97.80%
Significant unobservable inputs (Level 3) \| U.S. government and agencies
Assets
Fixed income securities	$ 0	$ 0
Significant unobservable inputs (Level 3) \| Municipal
Assets
Fixed income securities	40	39
Significant unobservable inputs (Level 3) \| Corporate - public
Assets
Fixed income securities	25	33
Significant unobservable inputs (Level 3) \| Corporate - privately placed
Assets
Fixed income securities	122	97
Significant unobservable inputs (Level 3) \| Foreign government
Assets
Fixed income securities	0	0
Significant unobservable inputs (Level 3) \| Asset-backed securities
Assets
Fixed income securities	16	22
Significant unobservable inputs (Level 3) \| MBS
Assets
Fixed income securities	5	0
Fair Value Measured at Net Asset Value Per Share [Member]
Other investments:
Investments reported at NAV	$ 773	$ 787
Minimum \| Limited partnership interests
Fair value of assets and liabilities measured on recurring and non-recurring basis
Useful life	10 years
Distribution and proceed period	4 years
Maximum \| Limited partnership interests
Fair value of assets and liabilities measured on recurring and non-recurring basis
Useful life	12 years
Distribution and proceed period	9 years

Reinsurance (Tables)

12 Months Ended

Dec. 31, 2019

Reinsurance Disclosures [Abstract]

Summary of retention limits by period of policy issuance

The following table summarizes those retention limits by period of policy issuance.



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

Schedule of reinsurance premium ceded [Table Text Block]

The amounts ceded to Prudential for the years ended December 31 are as follows:



($ 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

Effects of reinsurance on premiums and contract charges

The effects of reinsurance on premiums and contract charges for the years ended December 31 are as follows:



($ in millions)	2019			2018			2017
Direct	$	748		$	743		$	734
Assumed
Affiliate	231			241			227
Non-affiliate	699			741			772
Ceded
Affiliate	(49		)	(51		)	(52		)
Non-affiliate	(270		)	(275		)	(288		)
Premiums and contract charges, net of reinsurance	$	1,359		$	1,399		$	1,393

Effects of reinsurance on contract benefits

The effects of reinsurance on contract benefits for the years ended December 31 are as follows:



($ in millions)	2019			2018			2017
Direct	$	1,038		$	1,062		$	1,003
Assumed
Affiliate	137			149			130
Non-affiliate	493			484			505
Ceded
Affiliate	(35		)	(35		)	(33		)
Non-affiliate	(152		)	(214		)	(175		)
Contract benefits, net of reinsurance	$	1,481		$	1,446		$	1,430

Effects of reinsurance on interest credited to contractholder funds

The effects of reinsurance on interest credited to contractholder funds for the years ended December 31 are as follows:



($ in millions)	2019			2018			2017
Direct	$	463		$	533		$	546
Assumed
Affiliate	8			8			8
Non-affiliate	154			104			131
Ceded
Affiliate	(20		)	(20		)	(21		)
Non-affiliate	(20		)	(24		)	(25		)
Interest credited to contractholder funds, net of reinsurance	$	585		$	601		$	639

Summary of reinsurance recoverables on paid and unpaid benefits

Reinsurance recoverables on paid and unpaid benefits as of December 31 are summarized in the following table.



($ in millions)	2019		2018
Annuities	$	1,293	$	1,369
Life insurance	1,145		1,183
Other	52		53
Total	$	2,490	$	2,605

Investments - Realized capital gains and losses (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 (losses)	$ 341	$ (175)	$ 49
Impairment write-downs	(21)	(9)	(41)
Change in intent write-downs	0	0	(4)
Net OTTI losses recognized in earnings	(21)	(9)	(45)
Sales	54	(27)	110
Valuation of equity investments	297	(146)	0
Valuation and settlements of derivative instruments	11	7	(16)
Realized gain	65	34
Realized loss	(35)	(66)
Fixed income securities
Realized capital gains and losses by asset type
Realized capital gains (losses)	25	(40)	(6)
Realized gain			134
Realized loss			(86)
Mortgage loans
Realized capital gains and losses by asset type
Realized capital gains (losses)	0	2	1
Net OTTI losses recognized in earnings	0	0
Equity securities
Realized capital gains and losses by asset type
Realized capital gains (losses)	276	(124)	21
Net OTTI losses recognized in earnings	0	0
Limited partnership interests
Realized capital gains and losses by asset type
Realized capital gains (losses)	43	(22)	46
Net OTTI losses recognized in earnings	(2)	0
Derivatives
Realized capital gains and losses by asset type
Realized capital gains (losses)	11	10	(16)
Other
Realized capital gains and losses by asset type
Realized capital gains (losses)	(14)	(1)	$ 3
Net OTTI losses recognized in earnings	$ (14)	$ (1)

Investments - Mortgage loans (Details) $ in Millions	12 Months Ended
Investments - Mortgage loans (Details) $ in Millions	Dec. 31, 2019 USD ($) loan item	Dec. 31, 2018 USD ($)
Mortgage Loans on Real Estate
Mortgage loans	$ 3,988	$ 3,995
Threshold percentage of mortgage loans to total carrying value	5.00%
Percentage of mortgage portfolio carrying value	100.00%	100.00%
Apartment complex
Mortgage Loans on Real Estate
Percentage of mortgage portfolio carrying value	35.60%	33.50%
Office buildings
Mortgage Loans on Real Estate
Percentage of mortgage portfolio carrying value	22.40%	23.90%
Warehouse
Mortgage Loans on Real Estate
Percentage of mortgage portfolio carrying value	16.20%	15.90%
Retail
Mortgage Loans on Real Estate
Percentage of mortgage portfolio carrying value	14.30%	15.00%
Other
Mortgage Loans on Real Estate
Percentage of mortgage portfolio carrying value	11.50%	11.70%
Texas
Mortgage Loans on Real Estate
Percentage of mortgage portfolio carrying value	16.80%	15.60%
California
Mortgage Loans on Real Estate
Percentage of mortgage portfolio carrying value	14.10%	15.20%
Illinois
Mortgage Loans on Real Estate
Percentage of mortgage portfolio carrying value	8.00%	8.50%
Florida
Mortgage Loans on Real Estate
Percentage of mortgage portfolio carrying value	6.70%	6.40%
New Jersey
Mortgage Loans on Real Estate
Percentage of mortgage portfolio carrying value	6.00%	7.20%
Mortgage loans, not in foreclosure
Mortgage Loans on Real Estate
Mortgage loans	$ 3,988
Percentage of mortgage portfolio carrying value	100.00%
Number of loans \| item	264
Mortgage loans, not in foreclosure \| 2019
Mortgage Loans on Real Estate
Mortgage loans	$ 52
Percentage of mortgage portfolio carrying value	1.30%
Number of loans \| loan	9
Mortgage loans, not in foreclosure \| 2020
Mortgage Loans on Real Estate
Mortgage loans	$ 371
Percentage of mortgage portfolio carrying value	9.30%
Number of loans \| loan	35
Mortgage loans, not in foreclosure \| 2021
Mortgage Loans on Real Estate
Mortgage loans	$ 336
Percentage of mortgage portfolio carrying value	8.40%
Number of loans \| loan	24
Mortgage loans, not in foreclosure \| 2022
Mortgage Loans on Real Estate
Mortgage loans	$ 684
Percentage of mortgage portfolio carrying value	17.20%
Number of loans \| loan	49
Mortgage loans, not in foreclosure \| Thereafter
Mortgage Loans on Real Estate
Mortgage loans	$ 2,545
Percentage of mortgage portfolio carrying value	63.80%
Number of loans \| loan	147

Supplemental Cash Flow Information

12 Months Ended

Dec. 31, 2019

Supplemental Cash Flow Information [Abstract]

Supplemental Cash Flow Information

Non-cash investing activities include $67 million, $43 million and $51 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.

In 2017, the Company redeemed $325 million of surplus notes due to Kennett Capital, Inc. (“Kennett”), an unconsolidated affiliate of ALIC. In connection with the redemption, the related $325 million of notes due from Kennett (recorded as other investments) were extinguished.

Liabilities for collateral received in conjunction with the Company’s securities lending program were $522 million, $517 million and $539 million as of December 31, 2019, 2018 and 2017, respectively, and are reported in other liabilities and accrued expenses. Obligations to return cash collateral for over-the-counter (“OTC”) and cleared derivatives were $8 million, $8 million and $3 million as of December 31, 2019, 2018 and 2017, respectively, and are reported in other liabilities and accrued expenses or other investments.

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



($ in millions)	2019			2018			2017
Net change in proceeds managed
Net change in fixed income securities	$	28		$	94		$	149
Net change in short-term investments	(33		)	(77		)	(142		)
Operating cash flow (used) provided	(5		)	17			7
Net change in cash	—			—			1
Net change in proceeds managed	$	(5	)	$	17		$	8

Net change in liabilities
Liabilities for collateral, beginning of year	$	(525	)	$	(542	)	$	(550	)
Liabilities for collateral, end of year	(530		)	(525		)	(542		)
Operating cash flow provided (used)	$	5		$	(17	)	$	(8	)

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 for the years ended December 31 are as follows:



($ in millions)	2019			2018			2017
Balance, beginning of year	$	1,232		$	1,156		$	1,187
Acquisition costs deferred	55			78			122
Amortization charged to income	(180		)	(146		)	(152		)
Effect of unrealized gains and losses	(160		)	144			(46		)
Reinsurance assumed from AAC	—			—			45
Balance, end of year	$	947		$	1,232		$	1,156

Schedule of DSI activity for Allstate Financial

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



($ 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

Fair Value of Assets and Liabilities - Financial assets and liabilties (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Financial assets
Mortgage loans	$ 3,988	$ 3,995
Financial liabilities
Liability for collateral	530	525	$ 542	$ 550
Notes due to related parties	214	140
Significant unobservable inputs (Level 3) \| Carrying value
Financial assets
Mortgage loans	3,988	3,995
Bank loans	344	422
Agent loans	666	620
Financial liabilities
Contractholder funds on investment contracts	8,403	9,213
Notes due to related parties	214	140
Significant unobservable inputs (Level 3) \| Fair value
Financial assets
Mortgage loans	4,159	4,028
Bank loans	337	408
Agent loans	664	617
Financial liabilities
Contractholder funds on investment contracts	9,123	9,629
Notes due to related parties	215	138
Significant other observable inputs (Level 2) \| Carrying value
Financial liabilities
Liability for collateral	530	525
Significant other observable inputs (Level 2) \| Fair value
Financial liabilities
Liability for collateral	$ 530	$ 525

Investments - Municipal bonds and other (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Municipal Bonds
Fair value	$ 21,725	$ 21,400
Threshold percentage of municipal to total carrying value	5.00%
Securities loaned
Fixed income and equity securities loaned	$ 506	502
Interest income on collateral, net of fees	1	1	$ 1
Short-term investments	1,191	810
Other	1,427	1,300
Other investment information
Below investment grade assets	2,830	$ 2,570
Fixed income securities and short-term investments deposited with regulatory authorities	21
Non-income producing fixed income securities and other investments	$ 15
Texas
Municipal Bonds
Percentage of municipal bonds carrying value	17.80%	17.60%
California
Municipal Bonds
Percentage of municipal bonds carrying value	15.00%	15.00%
Oregon
Municipal Bonds
Percentage of municipal bonds carrying value	12.60%	9.80%
New York
Municipal Bonds
Percentage of municipal bonds carrying value	7.00%	5.70%
New Jersey
Municipal Bonds
Percentage of municipal bonds carrying value	6.70%	5.00%
Illinois
Municipal Bonds
Percentage of municipal bonds carrying value	6.30%	4.60%
Policy loans
Securities loaned
Other	$ 557	$ 561
Agent loans
Securities loaned
Other	666	620
Bank loans
Securities loaned
Other	344	422
Real estate
Securities loaned
Other	292	228
Derivatives and other
Securities loaned
Other	125	30
Municipal
Municipal Bonds
Fair value	$ 1,755	$ 2,195

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



($ in millions)	2019			2018			2017
Net change in proceeds managed
Net change in fixed income securities	$	28		$	94		$	149
Net change in short-term investments	(33		)	(77		)	(142		)
Operating cash flow (used) provided	(5		)	17			7
Net change in cash	—			—			1
Net change in proceeds managed	$	(5	)	$	17		$	8

Net change in liabilities
Liabilities for collateral, beginning of year	$	(525	)	$	(542	)	$	(550	)
Liabilities for collateral, end of year	(530		)	(525		)	(542		)
Operating cash flow provided (used)	$	5		$	(17	)	$	(8	)

Investments

12 Months Ended

Dec. 31, 2019

Investments [Abstract]

Investments

Fair values

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



($ in millions)	Amortized cost		Gross unrealized					Fair value
	Amortized cost		Gains		Losses			Fair value
December 31, 2019
U.S. government and agencies	$	848	$	34	$	—		$	882
Municipal	1,483		279		(7		)	1,755
Corporate	17,301		1,170		(30		)	18,441
Foreign government	142		7		—			149
ABS	316		4		(3		)	317
MBS	127		55		(1		)	181
Total fixed income securities	$	20,217	$	1,549	$	(41	)	$	21,725

December 31, 2018
U.S. government and agencies	$	740	$	33	$	—		$	773
Municipal	1,997		202		(4		)	2,195
Corporate	17,534		434		(381		)	17,587
Foreign government	170		9		—			179
ABS	429		3		(3		)	429
MBS	187		51		(1		)	237
Total fixed income securities	$	21,057	$	732	$	(389	)	$	21,400

Scheduled maturities

The scheduled maturities for fixed income securities are as follows:



($ in millions)	As of December 31, 2019
($ in millions)	Amortized cost		Fair value
Due in one year or less	$	1,360	$	1,374
Due after one year through five years	7,690		7,994
Due after five years through ten years	7,455		7,955
Due after ten years	3,269		3,904
	19,774		21,227
ABS and MBS	443		498
Total	$	20,217	$	21,725

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

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



($ in millions)	2019			2018			2017
Fixed income securities	$	963		$	991		$	1,058
Mortgage loans	190			188			182
Equity securities	29			39			48
Limited partnership interests	175			327			457
Short-term investments	31			21			9
Policy loans	34			31			31
Other	93			91			79
Investment income, before expense	1,515			1,688			1,864
Investment expense	(104		)	(103		)	(87		)
Net investment income	$	1,411		$	1,585		$	1,777

Realized capital gains and losses

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



($ in millions)	2019			2018			2017
Fixed income securities	$	25		$	(40	)	$	(6	)
Mortgage loans	—			2			1
Equity securities	276			(124		)	21
Limited partnership interests	43			(22		)	46
Derivatives	11			10			(16		)
Other	(14		)	(1		)	3
Realized capital gains (losses)	$	341		$	(175	)	$	49

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



($ in millions)	2019			2018			2017
Impairment write-downs	$	(21	)	$	(9	)	$	(41	)
Change in intent write-downs	—			—			(4		)
Net OTTI losses recognized in earnings	(21		)	(9		)	(45		)
Sales	54			(27		)	110
Valuation of equity investments ⁽¹⁾	297			(146		)	—
Valuation and settlements of derivative instruments	11			7			(16		)
Realized capital gains (losses)	$	341		$	(175	)	$	49

_______________


⁽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 $65 million, $34 million and $134 million and gross losses of $35 million, $66 million and $86 million during 2019, 2018 and 2017, respectively.



	For the years ended December 31,
($ in millions)	2019		2018
Equity securities	$	216	$	(78	)
Limited partnership interests carried at fair value	57		113
Total	$	273	$	35

OTTI losses by asset type for the years ended December 31 are as follows:



($ 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	)	$	—		$	(1	)
Corporate	(1		)	(1		)	(2		)	(1		)	—			(1		)	(7		)	3			(4		)
ABS	(1		)	—			(1		)	—			(1		)	(1		)	(1		)	(1		)	(2		)
MBS	(4		)	2			(2		)	(5		)	(1		)	(6		)	(9		)	(1		)	(10		)
Total fixed income securities	(8		)	3			(5		)	(6		)	(2		)	(8		)	(18		)	1			(17		)
Mortgage loans	—			—			—			—			—			—			(1		)	—			(1		)
Equity securities	—			—			—			—			—			—			(16		)	—			(16		)
Limited partnership interests	(2		)	—			(2		)	—			—			—			(9		)	—			(9		)
Other	(14		)	—			(14		)	(1		)	—			(1		)	(2		)	—			(2		)
OTTI losses	$	(24	)	$	3		$	(21	)	$	(7	)	$	(2	)	$	(9	)	$	(46	)	$	1		$	(45	)

The total amount of OTTI losses included in AOCI at the time of impairment for fixed income securities, which were not included in earnings, are presented in the following table.



($ in millions)	December 31, 2019			December 31, 2018
Municipal	$	(6	)	$	(4	)
Corporate	—			(1		)
ABS	(4		)	(5		)
MBS	(30		)	(34		)
Total⁽¹⁾	$	(40	)	$	(44	)

____________


⁽¹⁾	The amounts exclude $92 million and $101 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.

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



($ in millions)	2019			2018			2017
Beginning balance	$	(123	)	$	(138	)	$	(176	)
Additional credit loss for securities previously other-than-temporarily impaired	(4		)	(7		)	(9		)
Additional credit loss for securities not previously other-than-temporarily impaired	(1		)	(1		)	(8		)
Reduction in credit loss for securities disposed or collected	25			22			54
Change in credit loss due to accretion of increase in cash flows	—			1			1
Ending balance	$	(103	)	$	(123	)	$	(138	)

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

Unrealized net capital gains and losses included in AOCI are as follows:



($ in millions)	Fair value		Gross unrealized					Unrealized net gains (losses)
December 31, 2019	Fair value		Gains		Losses			Unrealized net gains (losses)
Fixed income securities	$	21,725	$	1,549	$	(41	)	$	1,508
Short-term investments	1,191		—		—			—
Derivative instruments	—		—		—			—
EMA limited partnerships ⁽¹⁾								(2		)
Unrealized net capital gains and losses, pre-tax								1,506
Amounts recognized for:
Insurance reserves ⁽²⁾								(126		)
DAC and DSI ⁽³⁾								(213		)
Amounts recognized								(339		)
Deferred income taxes								(245		)
Unrealized net capital gains and losses, after-tax								$	922

December 31, 2018
Fixed income securities	$	21,400	$	732	$	(389	)	$	343
Short-term investments	810		—		—			—
Derivative instruments	—		—		—			—
EMA limited partnerships								—
Unrealized net capital gains and losses, pre-tax								343
Amounts recognized for:
Insurance reserves								—
DAC and DSI								(35		)
Amounts recognized								(35		)
Deferred income taxes								(65		)
Unrealized net capital gains and losses, after-tax								$	243

____________


⁽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 and losses

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



($ in millions)	2019			2018			2017
Fixed income securities	$	1,165		$	(914	)	$	147
Equity securities ⁽¹⁾	—			—			226
Derivative instruments	—			(2		)	(3		)
EMA limited partnerships	(2		)	(1		)	3
Total	1,163			(917		)	373
Amounts recognized for:
Insurance reserves	(126		)	315			(315		)
DAC and DSI	(178		)	154			(49		)
Amounts recognized	(304		)	469			(364		)
Deferred income taxes	(180		)	94			145
Increase (decrease) in unrealized net capital gains and losses, after-tax	$	679		$	(354	)	$	154

_______________


⁽¹⁾	Upon adoption of the recognition and measurement accounting standard on January 1, 2018, $308 million 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.

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



($ in millions)	Less than 12 months						12 months or more						Total unrealized losses
	Number of issues	Fair value		Unrealized losses			Number of issues	Fair value		Unrealized losses
	Number of issues	Fair value		Unrealized losses			Number of issues	Fair value		Unrealized losses
December 31, 2019
Fixed income securities
U.S. government and agencies	6	$	74	$	—		—	$	—	$	—		$	—
Municipal	4	22		(5		)	1	14		(2		)	(7		)
Corporate	92	504		(8		)	43	237		(22		)	(30		)
ABS	22	61		(1		)	5	19		(2		)	(3		)
MBS	8	1		—			22	5		(1		)	(1		)
Total fixed income securities	132	$	662	$	(14	)	71	$	275	$	(27	)	$	(41	)
Investment grade fixed income securities	85	$	524	$	(3	)	39	$	152	$	(17	)	$	(20	)
Below investment grade fixed income securities	47	138		(11		)	32	123		(10		)	(21		)
Total fixed income securities	132	$	662	$	(14	)	71	$	275	$	(27	)	$	(41	)

December 31, 2018
Fixed income securities
U.S. government and agencies	2	$	6	$	—		1	$	1	$	—		$	—
Municipal	38	98		(1		)	5	26		(3		)	(4		)
Corporate	1,261	6,799		(218		)	370	2,633		(163		)	(381		)
ABS	30	167		(1		)	11	31		(2		)	(3		)
MBS	127	18		—			49	10		(1		)	(1		)
Total fixed income securities	1,458	$	7,088	$	(220	)	436	$	2,701	$	(169	)	$	(389	)
Investment grade fixed income securities	948	$	5,255	$	(121	)	388	$	2,551	$	(147	)	$	(268	)
Below investment grade fixed income securities	510	1,833		(99		)	48	150		(22		)	(121		)
Total fixed income securities	1,458	$	7,088	$	(220	)	436	$	2,701	$	(169	)	$	(389	)

The following table summarizes 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)}	$	(7	)	$	(15	)	$	(22	)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost^{(3) (4)}	(13		)	(6		)	(19		)
Total unrealized losses	$	(20	)	$	(21	)	$	(41	)

_______________


⁽¹⁾	Below investment grade fixed income securities include $6 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 $2.48 billion and $2.51 billion, respectively, and limited partnerships carried at fair value totaled $773 million and $787 million, 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, $3.99 billion and $4.00 billion as of December 31, 2019 and 2018, respectively. Substantially all of the commercial mortgage loans are non-recourse to the borrower.



(% of mortgage loan portfolio carrying value)	2019		2018
Texas	16.8	%	15.6	%
California	14.1		15.2
Illinois	8.0		8.5
Florida	6.7		6.4
New Jersey	6.0		7.2

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



(% of mortgage loan portfolio carrying value)	2019		2018
Apartment complex	35.6	%	33.5	%
Office buildings	22.4		23.9
Warehouse	16.2		15.9
Retail	14.3		15.0
Other	11.5		11.7
Total	100.0	%	100.0	%

The contractual maturities of the mortgage loan portfolio as of December 31, 2019 are as follows:



($ in millions)	Number of loans	Carrying value		Percent
2020	9	$	52	1.3	%
2021	35	371		9.3
2022	24	336		8.4
2023	49	684		17.2
Thereafter	147	2,545		63.8
Total	264	$	3,988	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.

The following table reflects the 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	$	16	$	29	$	6	$	15	$	21
1.0 - 1.25	161		—		161		221		—		221
1.26 - 1.50	1,057		9		1,066		1,048		—		1,048
Above 1.50	2,696		28		2,724		2,659		42		2,701
Total non-impaired mortgage loans	$	3,927	$	53	$	3,980	$	3,934	$	57	$	3,991

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

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



($ in millions)	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.

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



($ 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 which totaled $1.76 billion and $2.20 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). The following table shows the principal geographic distribution of municipal bond issuers represented in the Company’s portfolio as of December 31. No other state represents more than 5% of the portfolio.



(% of municipal bond portfolio carrying value)	2019		2018
Texas	17.8	%	17.6	%
California	15.0		15.0
Oregon	12.6		9.8
New York	7.0		5.7
New Jersey	6.7		5.0
Illinois	6.3		4.6

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 $1.19 billion and $810 million, respectively.

Policy loans

Policy loans are carried at unpaid principal balances. As of December 31, 2019 and 2018, the carrying value of policy loans totaled $557 million and $561 million, respectively.

Other investments

Other investments primarily consist of agent loans, bank loans, real estate and derivatives. 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. Bank loans are primarily senior secured corporate loans and are carried at amortized cost. Real estate is carried at cost less accumulated depreciation. Derivatives are carried at fair value. The following table summarizes other investments by asset type.



($ in millions)	December 31, 2019		December 31, 2018
Agent loans	$	666	$	620
Bank loans	344		422
Real estate	292		228
Derivatives and other	125		30
Total	$	1,427	$	1,300

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 shareholder’s 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 $506 million and $502 million, respectively, were on loan under these agreements. Interest income on collateral, net of fees, was $1 million in each of 2019, 2018 and 2017.

Other investment information

Included in fixed income securities are below investment grade assets totaling $2.83 billion and $2.57 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 $21 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 $15 million.

Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands		12 Months Ended
	Jan. 01, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2019	Jan. 01, 2018	Jan. 01, 2017
Securities loaned
Cash collateral received as percentage of fair value of securities loaned		102.00%
Cash collateral received for securities loaned percentage foreign		105.00%
Deferred policy acquisition and sales inducement costs
Present value of future profits		$ 3,000	$ 3,000
Amortization expense of future profits		$ 357	$ 249	$ 232
Cumulative effect of change in accounting principle							$ 0
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
Length of securities lending transaction period		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
Interest-sensitive life insurance \| Minimum
Deferred policy acquisition and sales inducement costs
Period for amortization of DAC and DSI for interest-sensitive life, fixed annuities and other investment contracts		10 years
Interest-sensitive life insurance \| Maximum
Deferred policy acquisition and sales inducement costs
Period for amortization of DAC and DSI for interest-sensitive life, fixed annuities and other investment contracts		20 years
Fixed annuities \| Minimum
Deferred policy acquisition and sales inducement costs
Period for amortization of DAC and DSI for interest-sensitive life, fixed annuities and other investment contracts		5 years
Fixed annuities \| Maximum
Deferred policy acquisition and sales inducement costs
Period for amortization of DAC and DSI for interest-sensitive life, fixed annuities and other investment contracts		10 years
Accounting Standards Update 2016-01
Deferred policy acquisition and sales inducement costs
Equity securities						$ (308,000)
Private equity/debt funds, real estate funds and tax credit funds
Deferred policy acquisition and sales inducement costs
Period over which recognition of income on funds is delayed		3 months
Retained income
Deferred policy acquisition and sales inducement costs
Cumulative effect of change in accounting principle					$ 0	$ 314,000	$ 0
Forecast [Member] \| Retained income \| Accounting Standards Update 2016-13 \| Maximum
Deferred policy acquisition and sales inducement costs
Allowance for credit loss, period increase (decrease)	$ 85,000
Cumulative effect of change in accounting principle	$ (55,000)

Benefit Plans (Details) - USD ($) $ in Millions	12 Months Ended
Benefit Plans (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Allstate 401(k) Savings Plan
Cost allocated to Allstate 401(k) Savings Plan	$ 4	$ 5	$ 4
Pension benefits
Benefit Plans
Allocated Cost (Credit)	$ 3	$ 2	$ 7

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 Instruments and Hedging Activities Disclosure [Abstract]
Commitments to invest in limited partnership interests	$ 1,063	$ 1,195
Private placement commitments	16	7
Other loan commitments	$ 118	$ 176

Income Taxes - Reconciliation of income tax percentage (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Statutory federal income tax rate - expense	21.00%	21.00%	35.00%
Tax credits	(1.90%)	(3.20%)	(1.70%)
Dividends received deduction	(0.50%)	(0.70%)	(0.60%)
State income taxes	0.50%	1.50%	0.60%
Adjustments to prior year tax liabilities	0.20%	(0.30%)	(0.30%)
Non-deductible expenses	0.10%	0.00%	0.10%
Tax Legislation benefit	0.00%	(14.00%)	(71.80%)
Other	0.00%	0.10%	0.00%
Effective Income Tax Rate Reconciliation, Percent	19.40%	4.40%	(38.70%)

Derivative Financial Instruments and Off-balance sheet Financial Instruments - Foreign currency contracts in cash flow hedging and other (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) contract	Dec. 31, 2018 USD ($) contract	Dec. 31, 2017 USD ($) contract
Derivative Instruments, Gain (Loss)
Derivative, number of instruments held \| contract	6,592	7,062
Total gain (loss) recognized in net income on derivatives	$ 19	$ 45	$ 33
Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Total gain (loss) recognized in net income on derivatives	11	7	(16)
Contract benefits
Derivative Instruments, Gain (Loss)
Total gain (loss) recognized in net income on derivatives	7	(5)	9
Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Total gain (loss) recognized in net income on derivatives	1	43	40
Interest rate contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		1
Interest rate contracts \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		1
Interest rate contracts \| Contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		0
Interest rate contracts \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		0
Equity and index contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	63	(27)	41
Equity and index contracts \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	5	(4)	(4)
Equity and index contracts \| 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	58	(23)	45
Embedded derivative financial instruments
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(50)	61	4
Embedded derivative financial instruments \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0
Embedded derivative financial instruments \| 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	(57)	66	(5)
Foreign currency contracts
Derivative Instruments, Gain (Loss)
Gain (loss) recognized in OCI on derivatives during the period	0	1	(2)
Gain recognized in OCI on derivatives during the term of the hedging relationship	0	0	2
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	3	12	(14)
Foreign currency contracts \| Net investment income
Derivative Instruments, Gain (Loss)
Investment income, net	0	0	1
Foreign currency contracts \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Investment income, net	0	3	0
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	3	12	(14)
Foreign currency contracts \| 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
Credit default contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(1)		2
Credit default contracts \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(1)		2
Credit default contracts \| Contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	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
Total return swaps - fixed income
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	1	(1)
Total return swaps - fixed income \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	1	(1)
Total return swaps - fixed income \| Life and Annuity Contract Benefits [Member]
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0
Total return swaps - 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 swaps - equity index
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	3	(1)
Total return swaps - equity index \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	3	(1)
Total return swaps - equity index \| 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 swaps - 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
Fair Value Hedging \| Derivatives designated as accounting hedging instruments
Derivative Instruments, Gain (Loss)
Derivative, number of instruments held \| contract	1	0	0
Cash Flow Hedging \| Derivatives designated as accounting hedging instruments
Derivative Instruments, Gain (Loss)
Derivative, number of instruments held \| contract	0	1	1