0000899051-21-000036 | 10-Q | XBRL Viewer

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Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2021	Apr. 19, 2021
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Entity File Number	1-11840
Entity Registrant Name	ALLSTATE CORP
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-3871531
Entity Address, Address Line One	2775 Sanders Road
Entity Address, City or Town	Northbrook
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60062
City Area Code	847
Local Phone Number	402-5000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		299,338,684
Entity Central Index Key	0000899051
10-K Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus (i.e. Q1,Q2,Q3,FY)	Q1
Amendment Flag	false
Common stock par value \| NEW YORK STOCK EXCHANGE, INC.
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	ALL
Security Exchange Name	NYSE
Common stock par value \| CHICAGO STOCK EXCHANGE, INC
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	ALL
Security Exchange Name	CHX
Subordinated Debentures Due 2053 at 5.10 Percent \| NEW YORK STOCK EXCHANGE, INC.
Document Information [Line Items]
Title of 12(b) Security	5.100% Fixed-to-Floating Rate Subordinated Debentures due 2053
Trading Symbol	ALL.PR.B
Security Exchange Name	NYSE
Series G Preferred Stock \| NEW YORK STOCK EXCHANGE, INC.
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares represent 1/1,000th of a share of 5.625% Noncumulative Preferred Stock, Series G
Trading Symbol	ALL PR G
Security Exchange Name	NYSE
Series H Preferred Stock \| NEW YORK STOCK EXCHANGE, INC.
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares represent 1/1,000th of a share of 5.100% Noncumulative Preferred Stock, Series H
Trading Symbol	ALL PR H
Security Exchange Name	NYSE
Series I Preferred Stock \| NEW YORK STOCK EXCHANGE, INC.
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares represent 1/1,000th of a share of 4.750% Noncumulative Preferred Stock, Series I
Trading Symbol	ALL PR I
Security Exchange Name	NYSE

Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenues
Net investment income	$ 708	$ 246
Realized capital gains (losses)	426	(162)
Total revenues	12,451	9,866
Costs and expenses
Property and casualty insurance claims and claims expense	6,043	5,341
Shelter-in-Place Payback expense	0	210
Accident and health insurance policy benefits	233	141
Interest credited to contractholder funds	9	9
Amortization of deferred policy acquisition costs	1,523	1,365
Operating costs and expenses	1,731	1,338
Pension and other postretirement remeasurement (gains) losses	(310)	318
Restructuring and related charges	51	4
Amortization of purchased intangibles	53	28
Interest expense	86	81
Total costs and expenses	9,419	8,835
Income from operations before income tax expense	3,032	1,031
Income tax expense	626	194
Net income from continuing operations	2,406	837
Loss from discontinued operations, net of tax	(3,793)	(288)
Net (loss) income	(1,387)	549
Less: Net loss attributable to noncontrolling interest	(6)	0
Net (loss) income attributable to Allstate	(1,381)	549
Less: Preferred stock dividends	27	36
Net (loss) income applicable to common shareholders	$ (1,408)	$ 513
Basic
Earnings per common share - Continuing operations basic (in dollars per share)	$ 7.88	$ 2.52
Earnings per common share - Discontinued operations basic (in dollars per share)	(12.53)	(0.90)
Earnings per common share - Basic (in dollars per share)	(4.65)	1.62
Diluted
Earnings per common share - Continuing operations diluted (in dollars per share)	7.78	2.48
Earnings per common share - Discontinued operations diluted (in dollars per share)	(12.38)	(0.89)
Earnings per common share - Diluted (in dollars per share)	$ (4.60)	$ 1.59
Weighted average common shares - Basic (in shares)	302.5	317.4
Weighted average common shares - Diluted (in shares)	306.4	322.4
Property and casualty insurance premiums
Revenues
Property and casualty insurance premiums	$ 10,307	$ 9,235
Accident and health insurance premiums and contract charges
Revenues
Insurance premiums, commissions and fees	455	282
Other revenue
Revenues
Insurance premiums, commissions and fees	$ 555	$ 265

Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (1,387)	$ 549
Changes in:
Unrealized net capital gains and losses	(1,500)	(1,357)
Unrealized foreign currency translation adjustments	34	(39)
Unamortized pension and other postretirement prior service credit	(15)	4
Other comprehensive loss, after-tax	(1,481)	(1,392)
Comprehensive loss	(2,868)	(843)
Less: Comprehensive loss attributable to noncontrolling interest	(6)	0
Comprehensive loss applicable to Allstate	$ (2,862)	$ (843)

Condensed Consolidated Statements of Financial Position (unaudited) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Investments
Fixed income securities, at fair value (amortized cost, net $39,437 and $40,034)	$ 40,594	$ 42,565
Equity securities, at fair value (cost $2,655 and $2,740)	3,154	3,168
Mortgage loans, net	902	746
Limited partnership interests	6,367	4,563
Short-term, at fair value (amortized cost $6,017 and $6,807)	6,017	6,807
Other investments	3,042	1,691
Total	60,076	59,540
Cash	709	311
Premium installment receivables, net	7,921	6,463
Deferred policy acquisition costs	4,129	3,774
Reinsurance and indemnification recoverables, net	9,645	7,215
Accrued investment income	347	371
Property and equipment, net	1,002	1,057
Goodwill	3,350	2,369
Other assets, net	5,803	2,756
Assets held for sale	36,829	42,131
Total assets	129,811	125,987
Liabilities
Reserve for property and casualty insurance claims and claims expense	31,414	27,610
Reserve for future policy benefits	1,219	1,028
Contractholder funds	878	857
Unearned premiums	18,177	15,946
Claim payments outstanding	951	957
Deferred income taxes	493	382
Other liabilities and accrued expenses	8,508	7,840
Long-term debt	7,996	7,825
Liabilities held for sale	33,383	33,325
Total liabilities	103,019	95,770
Commitments and Contingent Liabilities (Note 13)
Equity
Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized, 81.0 thousand shares issued and outstanding, $2,025 aggregate liquidation preference; $.01 par value, 8.0 million shares authorized, 200.0 thousand shares issued and outstanding, $200 aggregate liquidation preference for $200 in 2021	2,170	1,970
Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 300 million and 304 million shares outstanding	9	9
Additional capital paid-in	3,596	3,498
Retained income	51,107	52,767
Treasury stock, at cost (600 million and 596 million shares)	(31,886)	(31,331)
Unrealized net capital gains and losses:
Other unrealized net capital gains and losses	2,143	3,860
Unrealized adjustment to DAC, DSI and insurance reserves	(463)	(680)
Unrealized net capital gains and losses, after-tax	1,680	3,180
Unrealized foreign currency translation adjustments	27	(7)
Unamortized pension and other postretirement prior service credit	116	131
Total accumulated other comprehensive income (“AOCI”)	1,823	3,304
Total Allstate shareholders’ equity	26,819	30,217
Noncontrolling interest	(27)	0
Total equity	26,792	30,217
Total liabilities and equity	$ 129,811	$ 125,987

Condensed Consolidated Statements of Financial Position (unaudited) (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Fixed income securities, at fair value, amortized cost (in dollars)	$ 39,437	$ 40,034
Equity securities, at fair value, cost (in dollars)	2,655	2,740
Short-term, at fair value, amortized cost (in dollars)	$ 6,017	$ 6,807
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	25,000,000	25,000,000
Preferred stock, shares issued (in shares)	81,000.0	81,000.0
Preferred stock, shares outstanding (in shares)	81,000.0	81,000.0
Preferred stock, shares aggregate liquidation preference (in shares)	$ 2,025	$ 2,025
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	2,000,000,000.0	2,000,000,000.0
Common stock, shares issued (in shares)	900,000,000	900,000,000
Common stock, shares outstanding (in shares)	300,000,000	304,000,000
Treasury stock, shares (in shares)	600,000,000	596,000,000
Preferred stock additional capital paid-in
Preferred stock, par value (in dollars per share)			$ 0.01
Preferred stock, shares authorized (in shares)	8,000,000.0
Preferred stock, shares issued (in shares)	200,000.0
Preferred stock, shares outstanding (in shares)	200,000.0
Preferred stock, shares aggregate liquidation preference (in shares)	$ 200		$ 200

Condensed Consolidated Statements of Shareholders’ Equity (unaudited) - USD ($) $ in Millions	Total	Preferred Stock	Preferred stock additional capital paid-in	Common stock par value	Common stock additional capital paid-in	Retained income	Retained income Cumulative effect of change in accounting principle	Treasury stock	Accumulated other comprehensive income (loss)	Noncontrolling Interest
Increase (decrease) in equity
Total equity			$ 2,248		$ 3,463	$ 48,074	$ (88)	$ (29,746)	$ 1,950	$ 0
Balance, beginning of period at Dec. 31, 2019			2,248		3,463	48,074	(88)	(29,746)	1,950	0
Increase (decrease) in equity
Acquisition			0							0
Preferred stock redemption			(278)
Forward contract on accelerated share repurchase agreement					75
Equity incentive plans activity					(19)
Net (loss) income	$ 549					549				0
Dividends on common stock (declared per share of $0.81 and $0.54)						(173)
Dividends on preferred stock						(36)
Shares acquired								(511)
Shares reissued under equity incentive plans, net								48
Change in unrealized net capital gains and losses	(1,357)								(1,357)
Change in unrealized foreign currency translation adjustments	(39)								(39)
Change in unamortized pension and other postretirement prior service credit	4								4
Balance, end of period at Mar. 31, 2020	24,173	$ 0	1,970	$ 9	3,519	48,326		(30,209)	558	0
Increase (decrease) in equity
Total equity	24,173	0	1,970	9	3,519	48,326	(88)	(30,209)	558	0
Total Allstate shareholders’ equity	24,173
Total equity	24,173	0	1,970	9	3,519	48,326		(30,209)	558	0
Total Allstate shareholders’ equity	30,217
Total equity	30,217		1,970		3,498	52,767	0	(31,331)	3,304	0
Balance, beginning of period at Dec. 31, 2020	30,217		1,970		3,498	52,767	0	(31,331)	3,304	0
Increase (decrease) in equity
Acquisition			450							(21)
Preferred stock redemption			(250)
Forward contract on accelerated share repurchase agreement					113
Equity incentive plans activity					(15)
Net (loss) income	(1,387)					(1,387)				(6)
Dividends on common stock (declared per share of $0.81 and $0.54)						(246)
Dividends on preferred stock						(27)
Shares acquired								(601)
Shares reissued under equity incentive plans, net								46
Change in unrealized net capital gains and losses	(1,500)								(1,500)
Change in unrealized foreign currency translation adjustments	34								34
Change in unamortized pension and other postretirement prior service credit	(15)								(15)
Balance, end of period at Mar. 31, 2021	26,792	0	2,170	9	3,596	51,107		(31,886)	1,823	(27)
Increase (decrease) in equity
Total equity	30,217	0	2,170	9	3,596	51,107	$ 0	(31,886)	1,823	(27)
Total Allstate shareholders’ equity	26,819
Total equity	$ 26,792	$ 0	$ 2,170	$ 9	$ 3,596	$ 51,107		$ (31,886)	$ 1,823	$ (27)

Condensed Consolidated Statements of Shareholders’ Equity (unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement of Stockholders' Equity [Abstract]
Dividends (in USD per share)	$ 0.81	$ 0.54

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities
Net (loss) income	$ (1,387)	$ 549
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other non-cash items	260	155
Realized capital (gains) losses	(505)	462
Pension and other postretirement remeasurement (gains) losses	(310)	318
Amortization of deferred gain on reinsurance	2	1
Interest credited to contractholder funds	94	132
Loss on disposition of operations	(3,998)	0
Changes in:
Policy benefits and other insurance reserves	817	(654)
Unearned premiums	33	(272)
Deferred policy acquisition costs	(26)	38
Premium installment receivables, net	(124)	26
Reinsurance recoverables, net	(1,201)	24
Income taxes	181	28
Other operating assets and liabilities	(440)	222
Net cash provided by operating activities	1,388	1,027
Proceeds from sales
Fixed income securities	10,290	12,114
Equity securities	992	5,250
Limited partnership interests	152	749
Other investments	328	116
Investment collections
Fixed income securities	737	555
Mortgage loans	134	118
Other investments	109	61
Investment purchases
Fixed income securities	(7,968)	(14,667)
Equity securities	(539)	(1,619)
Limited partnership interests	(322)	(357)
Mortgage loans	0	(142)
Other investments	(603)	(129)
Change in short-term and other investments, net	744	(1,916)
Purchases of property and equipment, net	(61)	(65)
Acquisition of operations, net of cash acquired	(3,480)	0
Net cash provided by investing activities	513	68
Cash flows from financing activities
Redemption and repayment of long-term debt	(422)	0
Redemption of preferred stock	(250)	(288)
Contractholder fund deposits	252	246
Contractholder fund withdrawals	(374)	(471)
Dividends paid on common stock	(164)	(159)
Dividends paid on preferred stock	(27)	(29)
Treasury stock purchases	(467)	(414)
Shares reissued under equity incentive plans, net	4	8
Other	(32)	12
Net cash used in financing activities	(1,480)	(1,095)
Net increase in cash, including cash classified as assets held for sale	421	0
Cash from continuing operations at beginning of period	311	273
Cash classified as assets held for sale at beginning of period	66	65
Less: Cash classified as assets held for sale at end of period	89	58
Cash from continuing operations at end of period	$ 709	$ 280

General

3 Months Ended

Mar. 31, 2021

General [Abstract]

General


Note 1			General

Basis of presentation

The accompanying condensed consolidated financial statements include the accounts of The Allstate Corporation (the “Corporation”) and its wholly owned subsidiaries, primarily Allstate Insurance Company (“AIC”), a property and casualty insurance company with various property and casualty and life and investment subsidiaries (collectively referred to as the “Company” or “Allstate”) and variable interest entities in which the Company is considered a primary beneficiary. These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

The condensed consolidated financial statements and notes as of March 31, 2021 and for the three month periods ended March 31, 2021 and 2020 are unaudited. The condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring accruals) which are, in the opinion of management, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods.

These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2020. The results of operations for the interim periods should not be considered indicative of results to be expected for the full year. All significant intercompany accounts and transactions have been eliminated.

The Novel Coronavirus Pandemic or COVID-19 (“Coronavirus”)

The Coronavirus resulted in governments worldwide enacting emergency measures to combat the spread of the virus. These measures, which have included the implementation of travel restrictions, government-imposed shelter-in-place orders, quarantine periods, social distancing, and restrictions on large gatherings, have caused material disruption to businesses globally, resulting in increased unemployment, a recession and increased economic uncertainty. Additionally, there is no way of predicting with certainty how long the pandemic might last, including the potential for restrictions being restored or new restrictions being implemented that could result in further economic volatility.

The magnitude and duration of the global pandemic and the impact of actions taken by governmental authorities, businesses and consumers, including the availability, utilization rate and effectiveness of vaccines, to mitigate health risks create significant uncertainty. The Company continues to closely monitor and proactively adapt to developments and changing conditions. Currently, it is

not possible to reliably estimate the length and severity of the pandemic or its impact to the Company’s operations, but the effects could be material and may continue, emerge, evolve or accelerate in 2021.

Adopted accounting standards

Simplifications to the Accounting for Income Taxes Effective January 1, 2021, the Company adopted the new Financial Accounting Standards Board (“FASB”) guidance which simplified the accounting for income taxes by eliminating certain exceptions and clarifying certain guidance. The adoption had an immaterial impact on the Company’s results of operations and financial position.

Changes to the Disclosure Requirements for Defined Benefit Plans Effective January 1, 2021, the Company adopted new FASB guidance to modify certain annual disclosure requirements for defined benefit plans. New disclosures include the weighted-average interest crediting rates for cash balance plans and other plans with interest crediting rates and explanations for significant gains and losses related to changes in the benefit obligation during the reporting period. Disclosures to be eliminated include amounts expected to be reclassified out of AOCI and into the income statement in the coming year and the anticipated impact of a one-percentage point change in the assumed health care cost trend rate on service and interest cost and on the accumulated benefit obligation. The impacts of adoption are to the Company’s annual disclosures only.

Significant accounting policies

Consolidation of Variable Interest Entities (“VIEs”) A VIE is a legal entity that does not have sufficient equity at risk to finance its activities without additional financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not participate in the gains and losses of the entity. The Company consolidates VIEs in which the Company is deemed the primary beneficiary. The primary beneficiary is the entity that has both (1) the power to direct the activities of the VIE that most significantly affect that entity’s economic performance and (2) the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE.

Discontinued Operations and Held for Sale
A business is classified as held for sale when management having the authority to approve the action commits to a plan to sell the business, the sale is probable to occur during the next 12 months at a price that is reasonable in relation to its current fair value and certain other criteria are met. A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. When the carrying amount of the business exceeds its estimated fair value less cost to sell, a loss is recognized and updated each reporting period as appropriate.

The results of operations of business classified as held for sale are reported as discontinued operations if the disposal represents a strategic shift that will have a major effect on the entity’s operations and financial results. The disposal of a reportable segment generally qualifies for discontinued operations presentation.

When a business is identified for discontinued operations reporting:

•Results for prior periods are retrospectively reclassified as discontinued operations

•Results of operations are reported in a single line, net of tax, in the Condensed Consolidated Statements of Operations

•Assets and liabilities are reported as held for sale in the Condensed Consolidated Statements of Financial Position in the period in which the business is classified as held for sale

Additional details by major classification of operating results and financial position are included in Note 3.

Pending accounting standards

Accounting for Long-Duration Insurance Contracts In August 2018, the FASB issued guidance revising the accounting for certain long-duration insurance contracts. As disclosed in Note 3, the Company entered into agreements to sell substantially all of its life and annuity business in scope of the new standard. The Company’s reserves and deferred policy acquisition costs (“DAC”) for certain voluntary and individual life and accident and health insurance products not held for sale are subject to the new guidance.

Under the new guidance, measurement assumptions, including those for mortality, morbidity and policy terminations, will be required to be reviewed at least annually, and updated as appropriate. The effects of updating 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 that is updated through OCI at each reporting date. Current GAAP requires the measurement of 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 is effective for financial statements issued for reporting periods beginning after December 15, 2022 and restatement of prior periods presented is required. The new guidance will be applied to affected contracts and DAC on the basis of existing carrying amounts at the earliest period presented.

The Company is evaluating the anticipated impacts of applying the new guidance to both retained income and AOCI and does not anticipate the financial statement impact of adopting the new guidance to be material to the Company’s results of operations or financial position, assuming the dispositions of Allstate Life Insurance Company and Allstate Life Insurance Company of New York are completed.

Earnings per Common Share

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Earnings per Common Share


Note 2			Earnings per Common Share

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

For the Company, dilutive potential common shares consist of outstanding stock options and

unvested non-participating restricted stock units and contingently issuable performance stock awards. The effect of dilutive potential common shares does not include the effect of options with an anti-dilutive effect on earnings per common share because their exercise prices exceed the average market price of Allstate common shares during the period or for which the unrecognized compensation cost would have an anti-dilutive effect.


Computation of basic and diluted earnings per common share
(In millions, except per share data)	Three months ended March 31,
		2021		2020
Numerator:

Net income from continuing operations		$	2,406	$	837
Less: Net loss attributable to noncontrolling interest		(6)		—
Net income from continuing operations attributable to Allstate		2,412		837
Less: Preferred stock dividends		27		36
Net income from continuing operations applicable to common shareholders		2,385		801
Loss from discontinued operations, net of tax		(3,793)		(288)
Net (loss) income applicable to common shareholders		$	(1,408)	$	513

Denominator:

Weighted average common shares outstanding		302.5		317.4
Effect of dilutive potential common shares:
Stock options		2.5		3.3
Restricted stock units (non-participating) and performance stock awards		1.4		1.7
Weighted average common and dilutive potential common shares outstanding		306.4		322.4

Earnings per common share applicable to common shareholders
Basic
Continuing operations		$	7.88	$	2.52
Discontinued operations		(12.53)		(0.90)
Total		$	(4.65)	$	1.62

Diluted
Continuing operations		$	7.78	$	2.48
Discontinued operations		(12.38)		(0.89)
Total		$	(4.60)	$	1.59

Anti-dilutive options excluded from diluted earnings per common share		2.2		0.8

Acquisition and Disposition

3 Months Ended

Mar. 31, 2021

Business Combinations [Abstract]

Acquisition and Disposition


Note 3			Acquisition and Dispositions

Acquisition

On January 4, 2021, the Company completed the acquisition of National General Holdings Corp. (“National General”), an insurance holding company serving customers predominantly through independent agents for property and casualty and accident and health products.

National General provides personal and commercial automobile, homeowners, umbrella, recreational vehicle, motorcycle, lender-placed, health and other niche insurance products. This acquisition will increase the Company’s market share in personal property-liability and enhance its independent agent distribution platform.


Assets and liabilities recognized in acquisition (1)
($ in millions)	January 4, 2021
Assets
Investments	$	4,957
Cash	402
Premiums and other receivables, net	1,545
Deferred acquisition costs (value of business acquired)	317
Reinsurance recoverables, net	1,219
Intangible assets	1,199
Other assets	734
Goodwill (2)	980
Total assets	11,353

Liabilities
Reserve for property and casualty insurance claims and claims expense	2,774
Reserve for future policy benefits	189
Unearned premiums	2,245
Reinsurance payable	364
Debt (3)	592
Deferred tax liabilities	177
Other liabilities	701
Total liabilities	$	7,042

(1)The amounts reflect preliminary allocation of assets acquired and liabilities assumed. The acquisition date fair values of assets and liabilities, including insurance reserves and intangible assets, as well as the related estimated useful lives of intangibles, are preliminary estimates and are subject to revisions within one year of acquisition date.

(2)$616 million, $29 million and $335 million of goodwill were allocated to the Allstate Protection, Protection Services and Allstate Health and Benefits segments, respectively, and is non-deductible for income tax purposes. Goodwill is primarily attributable to expected synergies and future growth opportunities.

(3)Subsequent to the acquisition, the Company repaid $100 million of 7.625% Subordinated Notes and $72 million of Subordinated Debentures on February 3, 2021 and March 15, 2021, respectively. The Company had principal balance remaining of $417 million 6.750% Senior Notes due 2024 as of March 31, 2021, including a purchase accounting fair value adjustment of $67 million.


Intangible assets by type
($ in millions)	January 4, 2021
Distribution and customer relationships	$	795
Trade names	102
Licenses	97
Technology and other	205
Total	$	1,199

Intangible assets (reported in other assets in the Condensed Consolidated Statements of Financial Position), consist of capitalized costs, primarily of the estimated fair value of distribution, and customer relationships, trade names and licenses, technology and other assets. The estimated useful lives of these assets generally range from 3 to 10 years.

The estimated fair value of distribution and customer relationship intangible assets was

determined using an income approach that considered cash flows and profits expected to be generated by the acquired relationships, a weighted-average cost of capital discount rate reflecting the relative risk of achieving the anticipated cash flows, profits, the time value of money, and other relevant inputs. Technology and trade names were valued using estimated useful lives and market licensing rates discounted at a weighted-average cost of capital. Licenses are primarily insurance licenses which were valued using the median value of market transactions executed over an extended observation period.

Licenses are considered to have an indefinite useful life and are reviewed for impairment at least annually or more frequently if circumstances arise that indicate an impairment may have occurred. An impairment is recognized if the carrying amount of the asset exceeds its estimated fair value.

Intangible assets are carried at cost less accumulated amortization. Amortization expense is primarily calculated using accelerated amortization methods. Amortization expense on intangible assets was $23 million for the first three months of 2021 and we expect to recognize $228 million of amortization expense for the remainder of 2021.


Estimated amortization expense of National General intangible assets for the next five years and thereafter
($ in millions)
2022	$	218
2023	185
2024	135
2025	103
2026	70
Thereafter	140
Total amortization	$	851

Value of business acquired (reported in DAC in the Condensed Consolidated Statements of Financial Position) recognized in connection with the acquisition of National General represents the value of future profits expected to be earned over the lives of the contracts acquired determined using a weighted-average cost of capital discount and other relevant assumptions. These costs are amortized over the policy term of the contracts in force at the acquisition date, generally over six or twelve months. The value of business acquired asset recognized in connection with the National General acquisition totaled $317 million; the most significant portion relates to insurance contracts in the Allstate Protection segment. Amortization expense of the value of business acquired was $134 million for the first three months of 2021 and we expect to record an additional $183 million in 2021.

Other fair value purchase accounting adjustments included an increase in reserves of $74 million, a $13 million reduction to investments that were not held at fair value, and a net increase in current and deferred tax liabilities of $98 million.

Preferred stock Subsequent to the acquisition, the Company redeemed all outstanding shares of 7.50% Non-Cumulative Preferred Stock, Series A, par value $0.01 per share, all outstanding Depositary shares,

representing 1/40th of a Share of 7.50% Non-Cumulative Preferred Stock, Series B, and the underlying shares of 7.50% Non-Cumulative Preferred Stock, Series B, par value $0.01 per share, and all outstanding shares of Fixed/Floating Rate Non-Cumulative Convertible Preferred Stock, Series D, par value $0.01 per share for a total redemption payment of $250 million.

Transactions costs (reported in operating costs and expenses in the Condensed Consolidated Statements of Operations) of $22 million related to the acquisition were expensed as incurred in the Corporate and Other segment.

Dispositions

On January 26, 2021, the Company entered into a Stock Purchase Agreement with Everlake US Holdings Company (formerly Antelope US Holdings Company), an affiliate of an investment fund associated with The Blackstone Group Inc. to sell Allstate Life Insurance Company and certain affiliates for approximately $2.8 billion in cash.

On March 29, 2021, the Company entered into a Stock Purchase Agreement with Wilton Reassurance Company to sell Allstate Life Insurance Company of New York for $220 million in cash.

A loss on disposition of approximately $4 billion, after-tax, was recorded in the first quarter of 2021 related to these transactions. The loss on disposition is related to the run-off annuity segment, whose returns have been low. The ultimate amount of the loss on sale will be impacted by purchase price adjustments associated with certain pre-close transactions specified in the stock purchase agreements, changes in statutory capital and surplus prior to the closing date and the closing date equity of the sold entities determined under GAAP, excluding unrealized gains and losses. The transactions are expected to close in the second half of 2021, subject to regulatory approvals and other customary closing conditions.

In the first quarter of 2021, the assets and liabilities of the business are reclassified as held for sale and results are presented as discontinued operations. This change was applied on a retrospective basis.


Financial results from discontinued operations
	Three months ended March 31,
($ in millions)	2021		2020
Revenues
Life premiums and contract charges	$	340	$	335

Net investment income	439		175
Realized capital gains (losses)	79		(300)
Total revenues	858		210

Costs and expenses
Life contract benefits	410		360
Interest credited to contractholder funds	85		123
Amortization of DAC	36		36
Operating costs and expenses	55		61
Restructuring and related charges	19		1
Total costs and expenses	605		581

Amortization of deferred gain on reinsurance	2		1

Income (loss) from discontinued operations before income tax expense	255		(370)

Income tax expense (benefit)	50		(82)

Income (loss) from discontinued operations, net of tax	205		(288)

Loss on disposition of operations	(4,418)		—
Income tax benefit	(420)		—
Loss on disposition, net of tax	(3,998)		—

Loss from discontinued operations, net of tax	$	(3,793)	$	(288)


Major classes of assets and liabilities to be transferred in transactions
($ in millions)	March 31, 2021		December 31, 2020
Assets
Investments
Fixed income securities, at fair value (amortized cost, net $23,511 and $21,417)	$	25,073	$	23,789
Equity securities, at fair value (cost $1,191 and $1,113)	1,643		1,542
Mortgage loans, net	3,062		3,329
Limited partnership interests	1,942		3,046
Short-term, at fair value (amortized cost $1,652 and $993)	1,652		993
Other, net	936		1,998
Total investments	34,308		34,697
Cash	89		66
Deferred policy acquisitions costs	1,039		925
Reinsurance recoverables, net	1,982		2,005
Accrued investment income	248		229
Other assets	236		865
Separate accounts	3,339		3,344
Assets held for sale	41,241		42,131
Less: loss accrual	4,412		—
Total assets held for sale	$	36,829	$	42,131

Liabilities
Reserve for future policy benefits	$	11,581	$	11,740
Contractholder funds	16,112		16,356

Deferred income taxes	857		973
Other liabilities and accrued expenses	1,494		912
Separate accounts	3,339		3,344
Total liabilities held for sale	$	33,383	$	33,325


Cash flows from discontinued operations
	Three months ended March 31,
($ in millions)	2021		2020
Net cash provided by operating activities from discontinued operations	$	64	$	111
Net cash provided by investing activities from discontinued operations	88		85

Reportable Segments

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Reportable Segments


Note 4			Reportable Segments

Measuring segment profit or loss

The measure of segment profit or loss used in evaluating performance is underwriting income for the Allstate Protection and Run-off Property-Liability (previously Discontinued Lines and Coverages) segments and adjusted net income for the Protection Services, Allstate Health and Benefits (previously Allstate Benefits) and Corporate and Other segments.

National General results are included in the following segments:

•Property and casualty - Allstate Protection

•Accident and health - Allstate Health and Benefits

•Technology solutions - Protection Services

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

Adjusted net income is net income (loss) applicable to common shareholders, excluding:


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


• Business combination expenses and amortization or impairment of purchased intangibles
• Income or loss from discontinued operations
• Adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years
• Income tax expense or benefit on reconciling items

A reconciliation of these measures to net income (loss) applicable to common shareholders is provided below.


Reportable segments financial performance
	Three months ended March 31,
($ in millions)	2021		2020
Underwriting income (loss) by segment
Allstate Protection	$	1,660	$	1,351
Run-off Property-Liability	(3)		(3)

Adjusted net income (loss) by segment, after-tax
Protection Services	49		37
Allstate Health and Benefits	65		24
Corporate and Other	(123)		(107)

Reconciling items
Property-Liability net investment income	673		202
Realized capital gains (losses)	426		(162)
Pension and other postretirement remeasurement gains (losses)	310		(318)
Business combination expenses and amortization of purchased intangibles	(56)		(27)
Income tax expense on reconciling items	(622)		(196)
Total reconciling items	731		(501)

Loss from discontinued operations	(4,163)		(370)
Income tax benefit from discontinued operations	370		82
Total from discontinued operations	$	(3,793)	$	(288)

Less: Net loss attributable to noncontrolling interest	(6)		—

Net (loss) income applicable to common shareholders	$	(1,408)	$	513


Reportable segments revenue information
($ in millions)	Three months ended March 31,
	2021		2020
Property-Liability
Insurance premiums
Auto	$	6,809	$	6,155
Homeowners	2,392		2,037
Other personal lines	505		471
Commercial lines	190		218
Allstate Protection	9,896		8,881
Run-off Property-Liability	—		—
Total Property-Liability insurance premiums	9,896		8,881
Other revenue	385		213
Net investment income	673		202
Realized capital gains (losses)	404		(103)
Total Property-Liability	11,358		9,193

Protection Services
Protection plans	260		206
Roadside assistance	47		51
Finance and insurance products	104		97
Intersegment premiums and service fees (1)	41		38
Other revenue (2)	90		52
Net investment income	10		10
Realized capital gains (losses)	10		(24)
Total Protection Services	562		430

Allstate Health and Benefits
Employer voluntary benefits	263		282
Group health	83		—
Individual accident and health	109		—
Other revenue	80		—
Net investment income	19		20
Realized capital gains (losses)	2		(14)
Total Allstate Health and Benefits	556		288

Corporate and Other
Net investment income	6		14
Realized capital gains (losses)	10		(21)
Total Corporate and Other	16		(7)

Intersegment eliminations (1)	(41)		(38)
Consolidated revenues	$	12,451	$	9,866

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

(2)Other revenue is primarily related to Arity, Allstate Identity Protection, Allstate Dealer Services, and Allstate Protection Plans.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Investments

3 Months Ended

Mar. 31, 2021

Investments [Abstract]

Investments


Note 5			Investments


Portfolio composition

($ in millions)	March 31, 2021		December 31, 2020
Fixed income securities, at fair value	$	40,594	$	42,565
Equity securities, at fair value	3,154		3,168
Mortgage loans, net	902		746
Limited partnership interests	6,367		4,563
Short-term investments, at fair value	6,017		6,807
Other, net	3,042		1,691
Total	$	60,076	$	59,540


Amortized cost, gross unrealized gains (losses) and fair value for fixed income securities
($ in millions)	Amortized cost, net		Gross unrealized				Fair value
			Gains		Losses
March 31, 2021
U.S. government and agencies	$	3,103	$	26	$	(19)	$	3,110
Municipal	7,226		310		(36)		7,500
Corporate	27,145		1,045		(187)		28,003
Foreign government	977		16		(8)		985
ABS	934		11		(2)		943
MBS	52		1		—		53
Total fixed income securities	$	39,437	$	1,409	$	(252)	$	40,594



December 31, 2020
U.S. government and agencies	$	2,058	$	50	$	(1)	$	2,107
Municipal	7,100		480		(2)		7,578
Corporate	29,057		1,986		(26)		31,017
Foreign government	921		37		—		958
ABS	840		9		(3)		846
MBS	58		1		—		59
Total fixed income securities	$	40,034	$	2,563	$	(32)	$	42,565


Scheduled maturities for fixed income securities
($ in millions)	March 31, 2021
	Amortized cost, net		Fair value
Due in one year or less	$	1,279	$	1,291
Due after one year through five years	18,216		18,810
Due after five years through ten years	13,464		13,818
Due after ten years	5,492		5,679
	38,451		39,598
ABS and MBS	986		996
Total	$	39,437	$	40,594

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 potential prepayment of principal prior to contractual maturity dates.


Net investment income
($ in millions)	Three months ended March 31,
		2021		2020
Fixed income securities		$	301	$	298
Equity securities		14		10
Mortgage loans		10		9
Limited partnership interests		378		(77)
Short-term investments		1		11
Other		41		31
Investment income, before expense		745		282
Investment expense		(37)		(36)
Net investment income		$	708	$	246


Realized capital gains (losses) by asset type
($ in millions)	Three months ended March 31,
		2021		2020
Fixed income securities		$	183	$	374
Equity securities		164		(510)
Mortgage loans		6		(10)
Limited partnership interests		4		(86)
Derivatives		11		78
Other		58		(8)
Realized capital gains (losses)		$	426	$	(162)


Realized capital gains (losses) by transaction type
($ in millions)	Three months ended March 31,
		2021		2020
Sales		$	246	$	388
Credit losses		2		(37)

Valuation of equity investments (1)		167		(591)
Valuation and settlements of derivative instruments		11		78
Realized capital gains (losses)		$	426	$	(162)

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


Gross realized gains (losses) on sales of fixed income securities
($ in millions)	Three months ended March 31,
		2021		2020
Gross realized gains		$	245	$	435
Gross realized losses		(64)		(59)

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 March 31, 2021 and 2020, respectively.


Net appreciation (decline) recognized in net income
($ in millions)	Three months ended March 31,
		2021		2020
Equity securities		$	125	$	(417)

Limited partnership interests carried at fair value		141		(28)
Total		$	266	$	(445)


Credit losses recognized in net income
($ in millions)	Three months ended March 31,
		2021		2020
Assets
Fixed income securities:

Corporate		$	1	$	(1)
ABS		1		—
MBS		—		(1)
Total fixed income securities		2		(2)
Mortgage loans		6		(9)
Limited partnership interests		—		(5)
Other investments
Bank loans		(6)		(20)

Total credit losses by asset type		$	2	$	(36)

Liabilities
Commitments to fund commercial mortgage loans, bank loans and agent loans		—		(1)
Total		$	2	$	(37)


Unrealized net capital gains and losses included in AOCI
($ in millions)	Fair value		Gross unrealized				Unrealized net gains (losses)
March 31, 2021			Gains		Losses
Fixed income securities	$	40,594	$	1,409	$	(252)	$	1,157

Short-term investments	6,017		—		—		—
Derivative instruments	—		—		(3)		(3)
Equity method of accounting (“EMA”) limited partnerships (1)							(1)
Investments classified as held for sale							1,562
Unrealized net capital gains and losses, pre-tax							2,715
Amounts recognized for:
Insurance reserves (2)							(358)
DAC and DSI (3)							(228)
Reclassification of noncontrolling interest							4
Amounts recognized							(582)
Deferred income taxes							(453)
Unrealized net capital gains and losses, after-tax							$	1,680

December 31, 2020
Fixed income securities	$	42,565	$	2,563	$	(32)	$	2,531
Short-term investments	6,807		—		—		—
Derivative instruments	—		—		(3)		(3)
EMA limited partnerships							(1)
Investments classified as held for sale							2,369
Unrealized net capital gains and losses, pre-tax							4,896
Amounts recognized for:
Insurance reserves							(496)
DAC and DSI							(364)
Amounts recognized							(860)
Deferred income taxes							(856)
Unrealized net capital gains and losses, after-tax							$	3,180

(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 annuity), which are now classified as held for sale.

(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. This adjustment relates to life insurance products, which are now primarily classified as held for sale.


Change in unrealized net capital gains (losses)
($ in millions)	Three months ended March 31, 2021
Fixed income securities	$	(1,374)
Short-term investments	—
Derivative instruments	—
EMA limited partnerships	—
Investments classified as held for sale	(807)
Total	(2,181)
Amounts recognized for:
Insurance reserves	138
DAC and DSI	136
Reclassification of noncontrolling interest	4
Amounts recognized	278
Deferred income taxes	403
Decrease in unrealized net capital gains and losses, after-tax	$	(1,500)


Carrying value for limited partnership interests
($ in millions)	March 31, 2021						December 31, 2020
	EMA		Fair Value		Total		EMA		Fair Value		Total
Private equity	$	3,935	$	1,295	$	5,230	$	2,667	$	988	$	3,655
Real estate	816		68		884		623		74		697
Other (1)	253		—		253		211		—		211
Total (2)	$	5,004	$	1,363	$	6,367	$	3,501	$	1,062	$	4,563

(1)Other consists of certain limited partnership interests where the underlying assets are predominately public equity and debt securities.

(2)Carrying value for limited partnership interests as of March 31, 2021 includes certain investments which were classified as assets held for sale as of December 31, 2020 and transferred to continuing operations in the first quarter of 2021.

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 March 31, 2021 and December 31, 2020, the fair value of short-term investments totaled $6.02 billion and $6.81 billion, respectively.

Other investments Other investments primarily consist of bank loans, real estate, policy loans, agent loans and derivatives. Bank loans are primarily senior secured corporate loans and are carried at amortized cost, net. Policy loans are carried at unpaid principal balances. Real estate is carried at cost less accumulated depreciation. Agent loans are loans issued to exclusive Allstate agents and are carried at amortized cost, net. Derivatives are carried at fair value.


Other investments by asset type
($ in millions)	March 31, 2021		December 31, 2020
Bank loans, net	$	1,260	$	772
Real estate	871		659
Policy loans	164		181
Agent loans, net	607		—
Derivatives	22		20
Other	118		59
Total (1)	$	3,042	$	1,691

(1)Other investments as of March 31, 2021 includes certain real estate, agent loans and other investments which were classified as assets held for sale as of December 31, 2020 and transferred to continuing operations in the first quarter of 2021.

Portfolio monitoring and credit losses

Fixed income securities The Company has a comprehensive portfolio monitoring process to identify and evaluate each fixed income security that may require a credit loss allowance.

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, any existing credit loss allowance would be written-off against the amortized cost basis of the asset along with any remaining unrealized losses, with incremental losses 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 based on the best estimate of future cash flows considering past events, current conditions and reasonable and supportable forecasts. The estimated future cash flows are discounted at the security’s current effective rate and is compared to the amortized cost of the security.

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 is 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, the financial condition and future earnings potential of the issue or issuer, expected defaults, expected recoveries, the value of underlying collateral, origination vintage year, 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, 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 Company does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the fixed income security, a credit loss allowance is recorded in earnings for the shortfall in expected cash flows; however, the amortized cost, net of the credit loss allowance, may not be lower than the fair value of the security. 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.

When a security is sold or otherwise disposed or when the security is deemed uncollectible and written off, the Company removes amounts previously recognized in the credit loss allowance. Recoveries after write-offs are recognized when received. Accrued interest excluded from the amortized cost of fixed income securities totaled $322 million and $351 million as of March 31, 2021 and December 31, 2020 and is reported within the accrued investment income line of the Condensed Consolidated Statements of Financial Position. The Company monitors accrued interest and writes off amounts when they are not expected to be received.

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 internally established thresholds. The process also includes the monitoring of other credit loss 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 credit losses using all reasonably available information relevant to the collectability or recovery of the security. Inherent in the Company’s evaluation of credit losses 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 requires a credit loss allowance 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 extent to which the fair value has been less than amortized cost.


Rollforward of credit loss allowance for fixed income securities
	Three months ended March 31,
($ in millions)		2021		2020
Beginning balance		$	(3)	$	—
Credit losses on securities for which credit losses not previously reported		—		(4)
Net decreases related to credit losses previously reported		2		—
Reduction of allowance related to sales		—		—



Ending balance (1) (2)		$	(1)	$	(4)

(1)Allowance for fixed income securities as of March 31, 2021 comprised $1 million of ABS. Allowance for fixed income securities as of March 31, 2020 comprised $1 million and $3 million of corporate bonds and MBS, respectively.

(2)Includes $1 million and $2 million of credit loss allowance for fixed income securities that are classified as held for sale as of March 31, 2021 and 2020, respectively.


Gross unrealized losses and fair value by type and length of time held 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
March 31, 2021
Fixed income securities
U.S. government and agencies	108	$	2,084	$	(19)	—	$	—	$	—	$	(19)
Municipal	804	1,398		(36)		1	5		—		(36)
Corporate	1,003	6,715		(176)		25	121		(11)		(187)
Foreign government	64	289		(8)		—	—		—		(8)
ABS	15	79		(2)		13	50		—		(2)
MBS	15	2		—		55	—		—		—

Total fixed income securities	2,009	$	10,567	$	(241)	94	$	176	$	(11)	$	(252)
Investment grade fixed income securities	1,821	$	9,206	$	(207)	69	$	67	$	(1)	$	(208)
Below investment grade fixed income securities	188	1,361		(34)		25	109		(10)		(44)
Total fixed income securities	2,009	$	10,567	$	(241)	94	$	176	$	(11)	$	(252)

December 31, 2020
Fixed income securities
U.S. government and agencies	26	$	215	$	(1)	—	$	—	$	—	$	(1)
Municipal	43	116		(2)		—	—		—		(2)
Corporate	107	730		(21)		14	46		(5)		(26)
Foreign government	7	7		—		—	—		—		—
ABS	21	157		(2)		12	43		(1)		(3)
MBS	11	—		—		57	—		—		—
Total fixed income securities	215	$	1,225	$	(26)	83	$	89	$	(6)	$	(32)
Investment grade fixed income securities	146	$	855	$	(8)	66	$	45	$	—	$	(8)
Below investment grade fixed income securities	69	370		(18)		17	44		(6)		(24)
Total fixed income securities	215	$	1,225	$	(26)	83	$	89	$	(6)	$	(32)


Gross unrealized losses by unrealized loss position and credit quality as of March 31, 2021
($ in millions)	Investment grade		Below investment grade		Total
Fixed income securities with unrealized loss position less than 20% of amortized cost, net (1) (2)	$	(207)	$	(34)	$	(241)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost, net (3) (4)	(1)		(10)		(11)
Total unrealized losses	$	(208)	$	(44)	$	(252)

(1)Below investment grade fixed income securities include $30 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, net, the degree of which suggests that these securities do not pose a high risk of having credit losses.

(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 March 31, 2021, 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.

Loans The Company establishes a credit loss allowance for mortgage loans, bank loans and agent loans when they are originated or purchased, and for unfunded commitments unless they are unconditionally cancellable by the Company. The Company uses a probability of default and loss given default model for mortgage loans and bank loans to estimate current expected credit losses that considers all relevant information available including past events, current conditions, and reasonable and supportable forecasts over the life of an asset. The Company also considers such factors as historical losses, expected prepayments and various economic factors. For mortgage loans the Company considers origination vintage year and property level information such as debt service coverage, property type, property location and collateral value. For bank loans the Company considers the credit rating of the borrower, credit spreads and type of loan. After the reasonable and supportable forecast period, the Company’s model reverts to historical loss trends. Given the less complex and homogenous nature of agent loans, the Company estimates current expected credit losses using historical loss experience over the estimated life of the loans, adjusted for current conditions, reasonable and supportable forecasts and expected prepayments.

Loans are evaluated on a pooled basis when they share similar risk characteristics. The Company monitors loans through a quarterly credit monitoring process to determine when they no longer share similar risk characteristics and are to be evaluated individually when estimating credit losses.

Loans are written off against their corresponding allowances when there is no reasonable expectation of recovery. If a loan recovers after a write-off, the estimate of expected credit losses includes the expected recovery.

Accrual of income is suspended for loans that are in default or when full and timely collection of principal and interest payments is not probable. Accrued income receivable is monitored for recoverability and when not expected to be collected is written off through net investment income. Cash receipts on loans on non-accrual status are generally recorded as a reduction of amortized cost.

Accrued interest is excluded from the amortized cost of loans and is reported within the accrued investment income line of the Condensed Consolidated Statements of Financial Position. As of March 31, 2021, accrued interest totaled $4 million, $3 million and $2 million for mortgage loans, bank loans and agent loans, respectively. As of December 31, 2020, accrued interest totaled $2 million and $3 million for mortgage loans and bank loans, respectively.

Mortgage loans When it is determined a mortgage loan shall be evaluated individually, the Company uses various methods to estimate credit losses on individual loans such as using collateral value less estimated costs to sell where applicable, including when foreclosure is probable or when repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. When collateral value is used, the mortgage loans may not have a credit loss allowance when the fair value of the collateral exceeds the loan’s amortized cost. An alternative approach may be utilized to estimate credit losses using the present value of the loan’s expected future repayment cash flows discounted at the loan’s current effective interest rate.

Individual loan credit loss allowances are adjusted for subsequent changes in the fair value of the collateral less costs to sell, when applicable, or present value of the loan’s expected future repayment cash flows.

Debt service coverage ratio is considered a key credit quality indicator when mortgage loan credit loss allowances are estimated. Debt service coverage ratio represents the amount of estimated cash flow 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.


Mortgage loans amortized cost by debt service coverage ratio distribution and year of origination
($ in millions)	March 31, 2021														December 31, 2020
	2016 and prior		2017		2018		2019		2020		Current		Total		Total
Below 1.0	$	15	$	—	$	—	$	—	$	—	$	—	$	15	$	—
1.0 - 1.25	29		—		13		23		10		—		75		46
1.26 - 1.50	105		36		24		130		—		—		295		201
Above 1.50	134		45		119		166		67		—		531		507
Amortized cost before allowance	$	283	$	81	$	156	$	319	$	77	$	—	$	916	$	754
Allowance													(14)		(8)
Amortized cost, net													$	902	$	746

Mortgage loans with a debt service coverage ratio below 1.0 that are not considered impaired primarily relate to situations 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 factors such as additional collateral, escrow balances or borrower guarantees. Payments on all mortgage loans were current as of March 31, 2021 and December 31, 2020.


Rollforward of credit loss allowance for mortgage loans
	Three months ended March 31,
($ in millions)		2021		2020
Beginning balance		$	(67)	$	(3)
Cumulative effect of change in accounting principle		—		(42)
Net decreases (increases) related to credit losses		22		(40)
Write-offs		—		—

Ending balance (1)		$	(45)	$	(85)

(1)Includes $31 million and $68 million of credit loss allowance for mortgage loans that are classified as held for sale as of March 31, 2021 and 2020, respectively.

Bank loans When it is determined a bank loan shall be evaluated individually, the Company uses various methods to estimate credit losses on individual loans such as the present value of the loan’s expected future repayment cash flows discounted at the loan’s current effective interest rate.

Credit ratings of the borrower are considered a key credit quality indicator when bank loan credit loss allowances are estimated. The ratings are updated quarterly and are either received from a nationally recognized rating agency or a comparable internal rating is derived if an externally provided rating is not available. The year of origination is determined to be the year in which the asset is acquired.


Bank loans amortized cost by credit rating and year of origination
($ in millions)	March 31, 2021														December 31, 2020
	2016 and prior		2017		2018		2019		2020		Current		Total		Total
BBB	$	—	$	5	$	7	$	11	$	8	$	29	$	60	$	38
BB	9		22		30		42		36		172		311		168
B	13		68		86		77		139		389		772		456
CCC and below	11		28		32		55		27		13		166		161




Amortized cost before allowance	$	33	$	123	$	155	$	185	$	210	$	603	$	1,309	$	823
Allowance													(49)		(51)
Amortized cost, net													$	1,260	$	772


Rollforward of credit loss allowance for bank loans
($ in millions)	Three months ended March 31,
		2021		2020
Beginning balance		$	(67)	$	—
Cumulative effect of change in accounting principle		—		(53)
Net increases related to credit losses		(2)		(27)
Reduction of allowance related to sales		9		1
Write-offs		—		—

Ending balance (1)		$	(60)	$	(79)

(1)Includes $11 million and $22 million of credit loss allowance for bank loans that are classified as held for sale as of March 31, 2021 and 2020, respectively.

Agent loans The Company monitors agent loans to determine when they should be removed from the pool and assessed for credit losses individually by using internal credit risk grades that classify the loans into risk categories. The categorization is based on relevant information about the ability of borrowers to service their debt, such as historical payment experience, current business trends, cash flow coverage and collateral quality. Internal credit risk grades are updated annually or more frequently if conditions are warranted based on the Company’s credit monitoring process.

As of March 31, 2021, 85% of agent loans balance represents the top three highest credit quality categories. The allowance for agent loans totaled $6 million as of March 31, 2021. Agent loans were all classified as assets held for sale as of December 31, 2020 and transferred to continuing operations in the first quarter of 2021.

Fair Value of Assets and Liabilities

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities


Note 6			Fair Value of Assets and Liabilities

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

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

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

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

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

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

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

The availability of observable inputs varies by instrument. In situations where fair value is based on internally developed pricing models or inputs that are unobservable in the market, the determination of fair

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

The Company is responsible for the determination of fair value and the supporting assumptions and methodologies. The Company gains assurance that assets and liabilities are appropriately valued through the execution of various processes and controls designed to ensure the overall reasonableness and consistent application of valuation methodologies, including inputs and assumptions, and compliance with accounting standards. For fair values received from third parties or internally estimated, the Company’s processes and controls are designed to ensure that the valuation methodologies are appropriate and consistently applied, the inputs and assumptions are reasonable and consistent with the objective of determining fair value, and the fair values are accurately recorded. For example, on a continuing basis, the Company assesses the reasonableness of individual fair values that have stale security prices or that exceed certain thresholds as compared to previous fair values received from valuation service providers or brokers or derived from internal models. The Company performs procedures to understand and assess the methodologies, processes and controls of valuation service providers. In addition, the Company may validate the reasonableness of fair values by

comparing information obtained from valuation service providers or brokers to other third-party valuation sources for selected securities. The Company performs ongoing price validation procedures such as back-testing of actual sales, which corroborate the various inputs used in internal models to market observable data. When fair value determinations are expected to be more variable, the Company validates them through reviews by members of management who have relevant expertise and who are independent of those charged with executing investment transactions.

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

(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 mortgage loans, bank loans, agent loans and policy loans and are only included in the fair value hierarchy disclosure when the individual investment is reported at fair value.

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

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

Level 2 measurements

•Fixed income securities:

U.S. government and agencies, municipal, corporate - public and foreign government: The primary inputs to the valuation include quoted

prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.

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

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

ABS and MBS: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, collateral performance and credit spreads. Certain ABS are valued based on non-binding broker quotes whose inputs have been corroborated to be market observable. Residential MBS include prepayment speeds as a primary input for valuation.

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

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

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

Over-the-counter (“OTC”) derivatives, including interest rate swaps, foreign currency swaps, total return swaps, foreign exchange forward contracts, certain options and certain credit default swaps, are valued using models that rely on inputs such as interest rate yield curves, implied volatilities, index price levels, currency rates, and credit spreads that are observable for substantially the full term of the contract. The valuation techniques underlying the models are widely accepted in the financial services industry and do not involve significant judgment.

•Assets held for sale: Comprise U.S. government and agencies, municipal, corporate, foreign government, ABS and MBS fixed income securities, equity securities, short-term investments and other investments. The valuation is based on the respective asset type as described above.

•Liabilities held for sale: Comprise other liabilities, mainly free-standing exchange listed derivatives, that are not actively traded and are valued based on quoted prices for identical instruments in markets that are not active.

Level 3 measurements

•Fixed income securities:

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

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

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

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

•Other investments: Certain OTC derivatives, such as interest rate caps, certain credit default swaps and certain options (including swaptions), are

valued using models that are widely accepted in the financial services industry. These are categorized as Level 3 as a result of the significance of non-market observable inputs such as volatility. Other primary inputs include interest rate yield curves and credit spreads, and quoted prices for identical or similar assets in markets that exhibit less liquidity relative to those markets supporting Level 2 fair value measurements.

•Assets held for sale: Comprise municipal, corporate, ABS and MBS fixed income securities and equity securities. The valuation is based on the respective asset type as described above.

•Liabilities held for sale: Comprise derivatives embedded in certain life and annuity contracts which 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 March 31, 2021, the Company has commitments to invest $274 million in these limited partnership interests.


Assets and liabilities measured at fair value
	March 31, 2021
($ in millions)	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Counterparty and cash collateral netting			Total
Assets
Fixed income securities:
U.S. government and agencies	$	3,074		$	36		$	—					$	3,110
Municipal	—			7,482			18						7,500
Corporate - public	—			18,818			43						18,861
Corporate - privately placed	—			9,037			105						9,142
Foreign government	—			985			—						985
ABS	—			864			79						943
MBS	—			30			23						53
Total fixed income securities	3,074			37,252			268						40,594
Equity securities	2,318			426			410						3,154
Short-term investments	3,530			2,487			—						6,017
Other investments	—			39			3			$	(17)		25

Other assets	1			—			—						1
Assets held for sale	6,380			25,319			170			(7)			31,862
Total recurring basis assets	15,303			65,523			851			(24)			81,653

Total assets at fair value	$	15,303		$	65,523		$	851		$	(24)		$	81,653
% of total assets at fair value	18.7		%	80.3		%	1.0		%	—		%	100.0		%

Investments reported at NAV													1,363
Assets held for sale at NAV													562
Total													$	83,578
Liabilities

Other liabilities	$	(1)		$	(21)		$	—		$	13		$	(9)
Liabilities held for sale	—			(97)			(463)			4			(556)
Total recurring basis liabilities	(1)			(118)			(463)			17			(565)

Total liabilities at fair value	$	(1)		$	(118)		$	(463)		$	17		$	(565)
% of total liabilities at fair value	0.2		%	20.9		%	81.9		%	(3.0)		%	100.0		%


Assets and liabilities measured at fair value
	December 31, 2020
($ in millions)	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Counterparty and cash collateral netting			Total
Assets
Fixed income securities:
U.S. government and agencies	$	2,061		$	45		$	—					$	2,106
Municipal	—			7,562			17						7,579
Corporate - public	—			21,885			67						21,952
Corporate - privately placed	—			9,002			63						9,065
Foreign government	—			958			—						958
ABS	—			794			52						846
MBS	—			32			27						59
Total fixed income securities	2,061			40,278			226						42,565
Equity securities	2,468			396			304						3,168
Short-term investments	6,549			223			35						6,807
Other investments	—			29			—			$	(9)		20

Other assets	1			—			—						1
Assets held for sale	6,488			23,103			267			(6)			29,852
Total recurring basis assets	17,567			64,029			832			(15)			82,413

Total assets at fair value	$	17,567		$	64,029		$	832		$	(15)		$	82,413
% of total assets at fair value	21.3		%	77.7		%	1.0		%	—		%	100.0		%

Investments reported at NAV													1,062
Assets held for sale at NAV													762
Total													$	84,237
Liabilities

Other liabilities	$	—		$	(34)		$	—		$	18		$	(16)
Liabilities held for sale	—			(119)			(516)			9			(626)
Total recurring basis liabilities	—			(153)			(516)			27			(642)

Total liabilities at fair value	$	—		$	(153)		$	(516)		$	27		$	(642)
% of total liabilities at fair value	—		%	23.8		%	80.4		%	(4.2)		%	100.0		%

Quantitative information about the significant unobservable inputs used in Level 3 fair value measurements (1)

($ in millions)

Fair value

Valuation
technique

Unobservable
input

Range

Weighted
average

March 31, 2021

Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options

(435)

Stochastic cash flow model

Projected option cost

1.0 - 4.2%

2.83%

December 31, 2020

Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options

(483)

Stochastic cash flow model

Projected option cost

1.0 - 4.2%

2.80%

(1)These were included in the liabilities held for sale as of March 31, 2021 and December 31, 2020.

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 March 31, 2021 and December 31, 2020, Level 3 fair value measurements of fixed income securities total $268 million and $226 million, respectively, and include $62 million and $69 million, respectively, of securities valued based on non-binding broker quotes where the inputs have not been corroborated to be

market observable and $15 million and $18 million, respectively, of municipal fixed income securities that are not rated by third-party credit rating agencies. As the Company does not develop the Level 3 fair value unobservable inputs for these fixed income securities, they are not included in the table above. However, an increase (decrease) in credit spreads for fixed income securities valued based on non-binding broker quotes would result in a lower (higher) fair value, and an increase (decrease) in the credit rating of municipal bonds that are not rated by third-party credit rating agencies would result in a higher (lower) fair value.


Rollforward of Level 3 assets and liabilities held at fair value during the three month period ended March 31, 2021
	Balance as of December 31, 2020		Total gains (losses) included in:				Transfers				Transfers to (from) held for sale										Balance as of March 31, 2021
($ in millions)			Net income		OCI		Into Level 3		Out of Level 3				Purchases		Sales		Issues		Settlements
Assets
Fixed income securities:

Municipal	$	17	$	—	$	—	$	—	$	—	$	—	$	3	$	—	$	—	$	(2)	$	18
Corporate - public	67		1		(3)		—		—		(6)		17		(33)		—		—		43
Corporate - privately placed	63		—		(1)		10		(7)		13		27		—		—		—		105
ABS	52		—		—		—		(32)		—		59		—		—		—		79
MBS	27		—		—		—		—		—		—		(4)		—		—		23



Total fixed income securities	226		1		(4)		10		(39)		7		106		(37)		—		(2)		268
Equity securities	304		16		—		—		—		92		5		(7)		—		—		410
Short-term investments	35		—		—		—		—		—		—		—		—		(35)		—
Other investments	—		—		—		—		—		—		3		—		—		—		3

Assets held for sale	267		1		—		3		(8)		(99)		11		(3)		—		(2)		170
Total recurring Level 3 assets	832		18		(4)		13		(47)		—		125		(47)		—		(39)		851
Liabilities

Liabilities held for sale	(516)		55		—		—		—		—		—		—		(8)		6		(463)
Total recurring Level 3 liabilities	$	(516)	$	55	$	—	$	—	$	—	$	—	$	—	$	—	$	(8)	$	6	$	(463)


Rollforward of Level 3 assets and liabilities held at fair value during the three month period ended March 31, 2020
	Balance as of December 31, 2019		Total gains (losses) included in:				Transfers												Balance as of March 31, 2020
($ in millions)			Net income		OCI		Into Level 3		Out of Level 3		Purchases		Sales		Issues		Settlements
Assets
Fixed income securities:

Municipal	$	22	$	—	$	(1)	$	—	$	—	$	—	$	(1)	$	—	$	(1)	$	19
Corporate - public	36		—		—		—		—		—		—		—		—		36
Corporate - privately placed	32		—		—		—		—		1		—		—		—		33
ABS	49		—		—		26		(49)		33		—		—		(27)		32
MBS	35		—		—		—		—		—		—		—		—		35

Total fixed income securities	174		—		(1)		26		(49)		34		(1)		—		(28)		155
Equity securities	255		(17)		—		—		—		1		—		—		—		239
Short-term investments	25		—		—		—		—		25		—		—		—		50


Assets held for sale	284		(12)		(1)		—		(25)		—		(10)		—		(3)		233
Total recurring Level 3 assets	738		(29)		(2)		26		(74)		60		(11)		—		(31)		677
Liabilities

Liabilities held for sale	(462)		48		—		—		—		—		—		(8)		5		(417)
Total recurring Level 3 liabilities	$	(462)	$	48	$	—	$	—	$	—	$	—	$	—	$	(8)	$	5	$	(417)


Total Level 3 gains (losses) included in net income
	Three months ended March 31,
($ in millions)		2021		2020
Net investment income		$	(1)	$	(14)
Realized capital gains (losses)		18		(3)

Transfers into Level 3 during the three months ended March 31, 2021 and 2020 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 out of Level 3 during the three months ended March 31, 2021 and 2020 included situations

where a broker quote was used in the prior period and a quote became available from the Company’s independent third-party valuation service provider in the current period. A quote utilizing the new pricing source was not available as of the prior period, and any gains or losses related to the change in valuation source for individual securities were not significant.


Valuation changes included in net income and OCI for Level 3 assets and liabilities held as of March 31,
($ in millions)	Three months ended March 31,
		2021		2020
Assets
Fixed income securities:

Corporate - public		$	1	$	—
Corporate - privately placed		—		—


Total fixed income securities		1		—
Equity securities		$	16	$	(17)


Assets held for sale		1		(12)
Total recurring Level 3 assets		$	18	$	(29)
Liabilities

Liabilities held for sale		$	55	$	48
Total recurring Level 3 liabilities		55		48
Total included in net income		$	73	$	19

Components of net income
Net investment income		$	(1)	$	(14)
Realized capital gains (losses)		18		(3)




Assets
Municipal		$	—	$	(1)
Corporate - public		(3)		—
Corporate - privately placed		(1)		—

Assets held for sale		—		(1)

Changes in unrealized net capital gains and losses reported in OCI		$	(4)	$	(2)


Financial instruments not carried at fair value
($ in millions)		March 31, 2021				December 31, 2020
Financial assets	Fair value level	Amortized cost, net		Fair value		Amortized cost, net		Fair value
Mortgage loans	Level 3	$	902	$	948	$	746	$	792
Bank loans	Level 3	1,260		1,286		772		803
Agent loans	Level 3	607		606		—		—
Assets held for sale	Level 3	3,278		3,484		4,206		4,440

Financial liabilities	Fair value level	Carrying value (1)		Fair value		Carrying value (1)		Fair value
Contractholder funds on investment contracts	Level 3	$	33	$	35	$	—	$	—
Long-term debt	Level 2	7,577		9,046		7,825		9,489
Liability for collateral	Level 2	1,096		1,096		914		914
Liabilities held for sale (2)	Level 3	8,099		8,950		8,130		9,424

(1)Represents the amounts reported on the Condensed Consolidated Statements of Financial Position.

(2)Includes certain liabilities for collateral measured at Level 2 fair value as of March 31, 2021 and December 31, 2020.

- Definition

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

+ References + Details

Derivative Financial Instruments

3 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments


Note 7			Derivative Financial Instruments

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

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

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

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.

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

Fair value, which is equal to the carrying value, is the estimated amount that the Company would

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

For 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.

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

The Company’s primary embedded derivatives are equity options in life and annuity product contracts, which provide returns linked to equity indices to contractholders.


Summary of the volume and fair value positions of derivative instruments as of March 31, 2021
($ 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 not designated as accounting hedging instruments
Interest rate contracts



Futures	Other assets	n/a		614	$	—	$	—	$	—
Equity and index contracts
Options	Other investments	n/a		59	4		4		—
Futures	Other assets	n/a		1,142	1		1		—
Total return index contracts
Total return swap agreements – fixed income	Other investments	$	100	n/a	—		—		—

Foreign currency contracts
Foreign currency forwards	Other investments	20		n/a	—		—		—
Embedded derivative financial instruments
Other embedded derivative financial instruments	Other investments	750		n/a	—		—		—
Credit default contracts
Credit default swaps – buying protection	Other investments	33		n/a	(2)		—		(2)
Credit default swaps – selling protection	Other investments	900		n/a	18		18		—




Assets held for sale		15		2,485	155		155		—
Total asset derivatives		$	1,818	4,300	$	176	$	178	$	(2)

Liability derivatives


Derivatives not designated as accounting hedging instruments





Futures	Other liabilities & accrued expenses	n/a		3,560	$	(1)	$	—	$	(1)
Equity and index contracts

Futures	Other liabilities & accrued expenses	n/a		215	—		—		—




Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	$	543	n/a	5		17		(12)





Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	100		n/a	(7)		—		(7)
Credit default swaps – selling protection	Other liabilities & accrued expenses	5		n/a	—		—		—

Liabilities held for sale		2,340		2,670	(553)		7		(560)
Total liability derivatives		2,988		6,445	(556)		$	24	$	(580)
Total derivatives		$	4,806	10,745	$	(380)

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


Summary of the volume and fair value positions of derivative instruments as of December 31, 2020
($ 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

Futures	Other assets	n/a		290	$	—	$	—	$	—
Equity and index contracts
Options	Other investments	n/a		56	6		6		—
Futures	Other assets	n/a		905	1		1		—



Foreign currency contracts
Foreign currency forwards	Other investments	$	291	n/a	4		9		(5)
Embedded derivative financial instruments
Other embedded derivative financial instruments	Other investments	750		n/a	—		—		—
Credit default contracts
Credit default swaps – buying protection	Other investments	60		n/a	(3)		—		(3)
Credit default swaps – selling protection	Other investments	750		n/a	13		13		—




Assets held for sale		158		3,189	185		189		(4)
Total asset derivatives		$	2,009	4,440	$	206	$	218	$	(12)

Liability derivatives


Derivatives not designated as accounting hedging instruments
Interest rate contracts


Futures	Other liabilities & accrued expenses	n/a		705	$	—	$	—	$	—
Equity and index contracts

Futures	Other liabilities & accrued expenses	n/a		666	—		—		—
Total return index contracts
Total return swap agreements – fixed income	Other liabilities & accrued expenses	$	50	n/a	—		—		—

Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	250		n/a	(9)		1		(10)





Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	638		n/a	(16)		—		(16)
Credit default swaps – selling protection	Other liabilities & accrued expenses	4		n/a	—		—		—

Liabilities held for sale		2,240		2,737	(630)		1		(631)
Total liability derivatives		3,182		4,108	(655)		$	2	$	(657)
Total derivatives		$	5,191	8,548	$	(449)


Gross and net amounts for OTC derivatives (1)
($ in millions)			Offsets
	Gross amount		Counter-party netting		Cash collateral (received) pledged		Net amount on balance sheet		Securities collateral (received) pledged		Net amount
March 31, 2021
Asset derivatives	$	17	$	(19)	$	2	$	—	$	—	$	—
Liability derivatives	(15)		19		(6)		(2)		—		(2)

December 31, 2020
Asset derivatives	$	10	$	(9)	$	—	$	1	$	—	$	1
Liability derivatives	(19)		9		9		(1)		—		(1)

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


Gains (losses) from valuation and settlements reported on derivatives not designated as accounting hedges
($ in millions)	Realized capital gains (losses)		Operating costs and expenses		Total gain (loss) recognized in net income on derivatives
Three months ended March 31, 2021
Interest rate contracts	$	(1)	$	—	$	(1)
Equity and index contracts	(2)		16		14
Foreign currency contracts	10		—		10
Credit default contracts	4		—		4



Total	$	11	$	16	$	27












Three months ended March 31, 2020
Interest rate contracts	$	35	$	—	$	35
Equity and index contracts	33		(45)		(12)

Foreign currency contracts	25		—		25
Credit default contracts	(10)		—		(10)
Total return swaps - fixed income	(9)		—		(9)
Total return swaps - equity index	4		—		4
Total	$	78	$	(45)	$	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 March 31, 2021, counterparties pledged $10 million in collateral to the Company, and the Company pledged $6 million in cash and securities to counterparties which includes $4 million of collateral posted under MNAs for contracts containing credit-risk-contingent provisions that are in a liability position.

The Company has not incurred any losses on derivative financial instruments due to counterparty nonperformance. Other derivatives, including futures and certain option contracts, are traded on organized exchanges which require margin deposits and guarantee the execution of trades, thereby mitigating any potential credit risk.

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


OTC derivatives counterparty credit exposure by counterparty credit rating
($ in millions)	March 31, 2021							December 31, 2020
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+	1	$	189	$	8	$	—	1	$	186	$	4	$	—
A	1	149		2		—		—	—		—		—



Total	2	$	338	$	10	$	—	1	$	186	$	4	$	—

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

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

For certain exchange traded and cleared derivatives, margin deposits are required as well as daily cash settlements of margin accounts. As of March 31, 2021, the Company pledged $54 million and received $12 million in the form of margin deposits.

Market risk is the risk that the Company will incur losses due to adverse changes in market rates and prices. Market risk exists for all of the derivative financial instruments the Company currently holds, as these instruments may become less valuable due to adverse changes in market conditions. To limit this risk, the Company’s senior management has established risk control limits. In addition, changes in fair value of the derivative financial instruments that

the Company uses for risk management purposes are generally offset by the change in the fair value or cash flows of the hedged risk component of the related assets, liabilities or forecasted transactions.

Certain of the Company’s derivative transactions contain credit-risk-contingent termination events and cross-default provisions. Credit-risk-contingent termination events allow the counterparties to terminate the derivative agreement or a specific trade on certain dates if AIC’s 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.

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


($ in millions)	March 31, 2021		December 31, 2020
Gross liability fair value of contracts containing credit-risk-contingent features	$	13	$	19
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(7)		(6)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	(4)		(13)
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$	2	$	—

Credit derivatives - selling protection

A credit default swap (“CDS”) is a derivative instrument, representing an agreement between two parties to exchange the credit risk of a specified entity (or a group of entities), or an index based on the credit risk of a group of entities (all commonly referred to as the “reference entity” or a portfolio of “reference entities”), in return for a periodic premium. In selling

protection, CDS are used to replicate fixed income securities and to complement the cash market when credit exposure to certain issuers is not available or when the derivative alternative is less expensive than the cash market alternative. CDS typically have a five-year term.


CDS notional amounts by credit rating and fair value of protection sold
($ in millions)	Notional amount
	AAA		AA		A		BBB		BB and lower		Total		Fair value
March 31, 2021
Single name
Corporate debt	$	—	$	—	$	—	$	—	$	5	$	5	$	—


Index
Corporate debt	7		14		179		610		90		900		18
Total	$	7	$	14	$	179	$	610	$	95	$	905	$	18

December 31, 2020
Single name
Corporate debt	$	—	$	—	$	—	$	—	$	4	$	4	$	—


Index
Corporate debt	6		12		156		492		84		750		13
Total	$	6	$	12	$	156	$	492	$	88	$	754	$	13

In selling protection with CDS, the Company sells credit protection on an identified single name, a basket of names in a first-to-default (“FTD”) structure or credit derivative index (“CDX”) that is generally investment grade, and in return receives periodic premiums through expiration or termination of the agreement. With single name CDS, this premium or credit spread generally corresponds to the difference between the yield on the reference entity’s public fixed maturity cash instruments and swap rates at the time the agreement is executed. With a FTD basket, because of the additional credit risk inherent in a basket of named reference entities, the premium generally corresponds to a high proportion of the sum of the credit spreads of the names in the basket and the correlation between the names. CDX is utilized to take a position on multiple (generally 125) reference entities. Credit events are typically defined as bankruptcy, failure to pay, or restructuring, depending on the nature of the reference entities. If a credit event occurs, the Company settles with the counterparty, either through physical settlement or cash settlement.

In a physical settlement, a reference asset is delivered by the buyer of protection to the Company, in exchange for cash payment at par, whereas in a cash settlement, the Company pays the difference between par and the prescribed value of the reference asset. When a credit event occurs in a single name or FTD basket (for FTD, the first credit event occurring for any one name in the basket), the contract terminates at the time of settlement. For CDX, the reference entity’s name incurring the credit event is removed from the index while the contract continues until expiration. The maximum payout on a CDS is the contract notional amount. A physical settlement may afford the Company with recovery rights as the new owner of the asset.

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

Variable Interest Entities

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entities


Note 8			Variable Interest Entities

Consolidated VIEs, of which the Company is the primary beneficiary, include Adirondack Insurance Exchange, a New York reciprocal insurer, and New Jersey Skylands Insurance Association, a New Jersey reciprocal insurer (together “Reciprocal Exchanges”). The Reciprocal Exchanges are insurance carriers organized as unincorporated associations. The Company does not own the equity of the Reciprocal Exchanges, which is owned by their respective policyholders.

The Company manages the business operations of the Reciprocal Exchanges and has the power to direct their activities that most significantly impact their economic performance. The Company receives a management fee for the services provided to the Reciprocal Exchanges. In addition, the Company holds

surplus notes that provide capital to the Reciprocal Exchanges and would absorb any expected losses. The Company is therefore the primary beneficiary.

In the event of dissolution, policyholders would share any residual unassigned surplus but are not subject to assessment for any deficit in unassigned surplus of the Reciprocal Exchanges. The assets of the Reciprocal Exchanges can be used only to settle the obligations of the Reciprocal Exchanges and general creditors have no recourse to the Company. The results of operations of the Reciprocal Exchanges are included in the Company’s Allstate Protection segment and generated $45 million of earned premiums in the first quarter of 2021.


Assets and liabilities of consolidated VIEs
($ in millions)	March 31, 2021
Assets
Investments
Fixed income securities, at fair value (amortized cost, net $286)	$	281
Short-term, at fair value (amortized cost $61)	61

Investments	342
Cash	8

Premium installment and other receivables, net	43
Reinsurance recoverables, net	112
Other assets	109
Total assets	614
Liabilities
Reserve for property and casualty insurance claims and claims expense	223
Unearned premiums	189
Other liabilities and expenses	229
Total liabilities	$	641

Reserve for Property and Casualty Insurance Claims and Claims Expense

3 Months Ended

Mar. 31, 2021

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

Reserve for Property and Liability Insurance Claims and Claims Expense


Note 9			Reserve for Property and Casualty Insurance Claims and Claims Expense

The Company establishes reserves for claims and claims expense on reported and unreported claims of insured losses. The Company’s reserving process takes into account known facts and interpretations of circumstances and factors including the Company’s experience with similar cases, actual claims paid, historical trends involving claim payment patterns and pending levels of unpaid claims, loss management programs, product mix and contractual terms, changes in law and regulation, judicial decisions, and economic conditions.

When the Company experiences changes in the mix or type of claims or changing claim settlement patterns, it may need to apply actuarial judgment in the determination and selection of development factors to be more reflective of the new trends. For example, the Coronavirus has had a significant impact on driving patterns and auto frequency that may lead to historical development trends being less predictive of future loss development, potentially creating additional reserve variability. Generally, the initial reserves for a new accident year are established based on actual claim frequency and severity assumptions for different business segments, lines and coverages based on historical relationships to relevant inflation indicators. Reserves for prior accident years are statistically determined using several different actuarial estimation methods. Changes in auto claim frequency may result from changes in mix of business, the rate of distracted driving, miles driven or other macroeconomic factors. Changes in auto current year claim severity are generally influenced by inflation in the medical and auto repair sectors of the economy and the effectiveness and efficiency of claim practices. The Company mitigates these effects through various loss management programs. When such changes in claim data occur, actuarial judgment is used to determine appropriate development factors to establish reserves.

As part of the reserving process, the Company may also supplement its claims processes by utilizing third-party adjusters, appraisers, engineers, inspectors, and other professionals and information

sources to assess and settle catastrophe and non-catastrophe related claims. The effects of inflation are implicitly considered in the reserving process.

Because reserves are estimates of unpaid portions of losses that have occurred, including incurred but not reported (“IBNR”) losses, the establishment of appropriate reserves, including reserves for catastrophes, Run-off Property-Liability and reinsurance and indemnification recoverables, is an inherently uncertain and complex process. The ultimate cost of losses may vary materially from recorded amounts, which are based on management’s best estimates.

The highest degree of uncertainty is associated with reserves for losses incurred in the initial reporting period as it contains the greatest proportion of losses that have not been reported or settled. The Company also has uncertainty in the Run-off Property-Liability reserves that are based on events long since passed and are complicated by lack of historical data, legal interpretations, unresolved legal issues and legislative intent based on establishment of facts.

The Company regularly updates its reserve estimates as new information becomes available and as events unfold that may affect the resolution of unsettled claims. Changes in prior year reserve estimates, which may be material, are reported in property and casualty insurance claims and claims expense in the Condensed Consolidated Statements of Operations in the period such changes are determined.

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


Rollforward of the reserve for property and casualty insurance claims and claims expense
	Three months ended March 31,
($ in millions)	2021		2020
Balance as of January 1	$	27,610	$	27,712
Less recoverables (1)	(7,033)		(6,912)
Net balance as of January 1	20,577		20,800
National General acquisition as of January 4, 2021	1,797		—
Incurred claims and claims expense related to:
Current year	6,284		5,333
Prior years	(241)		8
Total incurred	6,043		5,341
Claims and claims expense paid related to:
Current year	(2,541)		(2,352)
Prior years	(3,731)		(3,554)
Total paid	(6,272)		(5,906)
Net balance as of March 31	22,145		20,235
Plus recoverables	9,269		6,913
Balance as of March 31	$	31,414	$	27,148

(1)Recoverables comprises reinsurance and indemnification recoverables.

Incurred claims and claims expense represents the sum of paid losses, claim adjustment expenses and reserve changes in the period. This expense included losses from catastrophes of $590 million and $211 million in the three months ended March 31, 2021 and 2020, respectively, net of recoverables.

Catastrophes are an inherent risk of the property and casualty insurance business that have contributed to, and will continue to contribute to, material year-to-year fluctuations in the Company’s results of operations and financial position.


Prior year reserve reestimates included in claims and claims expense (1)
	Three months ended March 31,
	Non-catastrophe losses				Catastrophe losses				Total
($ in millions)	2021		2020		2021 (2) (3)		2020		2021		2020
Auto	$	(17)	$	22	$	(19)	$	(9)	$	(36)	$	13
Homeowners	5		1		(208)		(8)		(203)		(7)
Other personal lines	—		(2)		(18)		(4)		(18)		(6)
Commercial lines	13		5		2		1		15		6
Run-off Property-Liability	1		2		—		—		1		2

Total prior year reserve reestimates	$	2	$	28	$	(243)	$	(20)	$	(241)	$	8

(1)Favorable reserve reestimates are shown in parentheses.

(2)Includes approximately $150 million of estimated recoveries related to Nationwide Aggregate Reinsurance Program cover for aggregate catastrophe losses occurring between April 1, 2020 and March 31, 2021, which primarily impacted homeowners reestimates.

(3)Includes approximately $110 million favorable subrogation settlements arising from the Woolsey wildfire, which primarily impacted homeowners reestimates.

Reinsurance and indemnification

3 Months Ended

Mar. 31, 2021

Reinsurance Disclosures [Abstract]

Reinsurance and indemnification


Note 10			Reinsurance and indemnification


Effects of reinsurance ceded and indemnification programs on property and casualty premiums earned and accident and health insurance premiums and contract charges
($ in millions)	Three months ended March 31,
	2021		2020
Property and casualty insurance premiums earned	$	(508)	$	(289)
Accident and health insurance premiums and contract charges	(24)		(3)


Effects of reinsurance ceded and indemnification programs on property and casualty insurance claims and claims expense and accident and health insurance policy benefits
($ in millions)	Three months ended March 31,
	2021		2020
Property and casualty insurance claims and claims expense (1) (2)	$	(1,593)	$	(131)
Accident and health insurance policy benefits	(29)		(6)

(1)Includes approximately $955 million of ceded losses, net of approximately $75 million of reinstatement premiums, related to the Nationwide Reinsurance Program for the three months ended March 31, 2021.

(2)Includes $386 million and $47 million of ceded losses related to the Michigan Catastrophic Claims Association for the three months ended March 31, 2021 and 2020, respectively.

Reinsurance and indemnification recoverables


Reinsurance and indemnification recoverables, net
($ in millions)	March 31, 2021		December 31, 2020
Property and casualty
Paid and due from reinsurers and indemnitors	$	256	$	101
Unpaid losses estimated (including IBNR)	9,269		7,033
Total property and casualty	$	9,525	$	7,134

Allstate Health and Benefits	120		81
Total	$	9,645	$	7,215


Rollforward of credit loss allowance for reinsurance recoverables
($ in millions)	Three months ended March 31,
	2021		2020
Property and casualty (1) (2)
Beginning balance	$	(59)	$	(60)
(Increase) decrease in the provision for credit losses	(1)		1


Ending balance	$	(60)	$	(59)

Allstate Health and Benefits
Beginning balance	$	(1)	$	(1)

Increase in the provision for credit losses	—		—
Write-offs	—		—

Ending balance	$	(1)	$	(1)

(1)Primarily related to Run-off Property-Liability reinsurance ceded.

(2)Indemnification recoverables are considered collectible based on the industry pool and facility enabling legislation.

Capital Structure

3 Months Ended

Mar. 31, 2021

Capital Structure

Capital Structure


Note 11			Capital Structure

Repayment of debt On March 29, 2021, the Company repaid, at maturity, $250 million of Floating Rate Senior Notes that bear interest at a floating rate equal to three-month LIBOR plus 0.43% per year.

Company Restructuring

3 Months Ended

Mar. 31, 2021

Restructuring and Related Activities [Abstract]

Company Restructuring


Note 12			Company Restructuring

The Company undertakes various programs to reduce expenses. These programs generally involve a reduction in staffing levels, and in certain cases, office closures. Restructuring and related charges primarily include the following costs related to these programs:

•Employee - severance and relocation benefits

•Exit - contract termination penalties

The expenses related to these activities are included in the Condensed Consolidated Statements of Operations as restructuring and related charges and totaled $51 million and $4 million during the three months ended March 31, 2021 and 2020, respectively.

Restructuring expenses in 2021 are primarily due to Transformative Growth to optimize and simplify the Company’s operating model and cost structure and costs related to the future work environment.

In connection with Transformative Growth, the Company expects to incur restructuring and related charges totaling approximately $290 million, with $238 million recorded in 2020 and $17 million recorded in the first quarter of 2021.

In connection with the future work environment, the Company expects to incur restructuring and related charges, primarily for real estate exit costs totaling approximately $110 million with $33 million recognized in the first quarter of 2021.

These charges are primarily recorded in the Allstate Protection segment. The Company expects these actions will be completed in 2021.

Employee costs related to the Transformative Growth program include severance and employee benefits primarily impacting claims, sales, service and support functions. Exit costs reflect real estate costs primarily related to accelerated amortization of right of use assets and related leasehold improvements at facilities to be vacated.


Restructuring activity during the period
($ in millions)	Employee costs		Exit costs		Total liability
Restructuring liability as of December 31, 2020	$	72	$	—	$	72
Expense incurred	2		53		55
Adjustments to liability	(4)		—		(4)
Payments and non-cash charges	(29)		(53)		(82)
Restructuring liability as of March 31, 2021	$	41	$	—	$	41

As of March 31, 2021, the cumulative amount incurred to date for active programs related to employee severance, relocation benefits and exit expenses totaled $220 million for employee costs and $105 million for exit costs.

Guarantees and Contingent Liabilities

3 Months Ended

Mar. 31, 2021

Guarantees and Contingent Liabilities

Guarantees and Contingent Liabilities


Note 13			Guarantees and Contingent Liabilities

Shared markets and state facility assessments

The Company is required to participate in assigned risk plans, reinsurance facilities and joint underwriting associations in various states that provide insurance coverage to individuals or entities that otherwise are unable to purchase such coverage from private insurers.

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

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.

The aggregate liability balance related to all guarantees was not material as of March 31, 2021.

Regulation and compliance

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

Legal and regulatory proceedings and inquiries

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

Background These matters raise difficult and complicated factual and legal issues and are subject to many uncertainties and complexities, including the underlying facts of each matter; novel legal issues; variations between jurisdictions in which matters are being litigated, heard, or investigated; changes in assigned judges; differences or developments in applicable laws and judicial interpretations; judges reconsidering prior rulings; the length of time before many of these matters might be resolved by settlement, through litigation, or otherwise; adjustments with respect to anticipated trial schedules and other proceedings; developments in similar

actions against other companies; the fact that some of the lawsuits are putative class actions in which a class has not been certified and in which the purported class may not be clearly defined; the fact that some of the lawsuits involve multi-state class actions in which the applicable law(s) for the claims at issue is in dispute and therefore unclear; and the challenging legal environment faced by corporations and insurance companies.

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

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

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

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

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

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

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

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

The Company currently estimates that the aggregate range of reasonably possible loss in excess of the amount accrued, if any, for the disclosed matters where such an estimate is possible is zero to $85 million, pre-tax. This disclosure is not an indication of expected loss, if any. Under accounting guidance, an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely” and an event is “remote” if “the chance of the future event or events occurring is slight.” This estimate is based upon currently available information and is subject to significant judgment and a variety of assumptions and known and unknown uncertainties. The matters underlying the estimate will change from time to time, and actual results may vary

significantly from the current estimate. The estimate does not include matters or losses for which an estimate is not possible. Therefore, this estimate represents an estimate of possible loss only for certain matters meeting these criteria. It does not represent the Company’s maximum possible loss exposure. Information is provided below regarding the nature of all of the disclosed matters and, where specified, the amount, if any, of plaintiff claims associated with these loss contingencies.

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

Claims related proceedings The Company is managing various disputes in Florida that raise challenges to the Company’s practices, processes, and procedures relating to claims for personal injury protection benefits under Florida auto policies. Medical providers continue to pursue litigation under various theories that challenge the amounts that the Company pays under the personal injury protection coverage, seeking additional benefit payments, as well as applicable interest, penalties and fees. There is a pending class action, Revival Chiropractic v. Allstate Insurance Company, et al. (M.D. Fla. filed January 2019; appeal pending, 11th Circuit Court of Appeals), where the court denied class certification and plaintiff’s request to file a renewed motion for class certification. The Company is also defending litigation involving individual plaintiffs.

The Company is defending putative class actions in various courts that raise challenges to the Company’s depreciation practices in homeowner property claims. In these lawsuits, plaintiffs generally allege that, when calculating actual cash value, the costs of “non-materials” such as labor, general contractor’s overhead and profit, and sales tax should not be subject to depreciation. The Company is currently defending the following lawsuits on this issue: Perry v. Allstate Indemnity Company, et al. (N.D. Ohio filed May 2016); Lado v. Allstate Vehicle and Property Insurance Company (S.D. Ohio filed March 2020); Maniaci v. Allstate Insurance Company (N.D. Ohio filed March 2020); Ferguson-Luke et al. v. Allstate Property and Casualty Insurance Company (N.D. Ohio filed April 2020); Huey v. Allstate Vehicle and Property Insurance Company (N.D. Miss. filed October 2019); Floyd, et al. v. Allstate Indemnity Company et al. (D.S.C. filed January 2020); Clark v. Allstate Vehicle and Property Insurance Company (Circuit Court of

Independence Co., Ark. filed February 2016); Thaxton v. Allstate Indemnity Company (Madison Co., Ill. filed July 2020); Hester v. Allstate Vehicle and Property Insurance Company (St. Clair Co., Ill. filed June 2020). No classes have been certified in any of the other matters.

The Company is defending putative class actions pending in multiple states alleging that the Company underpays total loss vehicle physical damage claims on auto policies. The allegedly systematic underpayments result from one or more of the following theories: (a) the third party valuation tool used by the Company as part of a comprehensive adjustment process is allegedly flawed, biased, or contrary to applicable law; (b) the Company allegedly does not pay sales tax, title fees, registration fees, and/or other specified fees that are allegedly mandatory under policy language or state legal authority; or (c) after paying for the value of the loss vehicle, then the Company allegedly is not entitled to retain the residual salvage value, and the Company allegedly must pay salvage value to the owner (or if the loss vehicle is retained by the owner, then the Company allegedly may not apply any offset for the salvage value).

The following cases are currently pending against the Company: Olberg v. Allstate Insurance Company, Allstate Fire and Casualty Insurance Company, and CCC Information Services, Inc. (W.D. Wash., filed April 2018); Bloomgarden v. Allstate Fire and Casualty Insurance Company (S.D. Fla., filed July 2018, dismissed August 2019, refiled on September 2019, remanded to 17th Judicial Circuit, Broward County October 2020); Erby v. Allstate Fire and Casualty Insurance Company (E.D. Pa., filed October 2018); Kronenberg v. Allstate Insurance Company and Allstate Fire and Casualty Insurance Company (E.D. N.Y., filed December 2018); Ryan v. Allstate Fire and Casualty Insurance Company (7th Judicial Circuit, Volusia County, Fla.; filed May 2019, dismissed and refiled October 2019); Durgin v. Allstate Property and Casualty Insurance Company (W.D. LA, filed June 7, 2019); Anderson v. Allstate Insurance Company (20th Judicial Circuit, Collier County, Fla.; filed August 2019); Cody v. Allstate Fire and Casualty Insurance Company and Allstate County Mutual Insurance Company (N.D. Tex., filed August 2019); Saad v. National General Insurance Company (Superior Ct., Los Angeles County, Cal.; filed May 2020); Williams v. Esurance Property and Casualty Insurance Company (C.D. Cal,; filed September 2020); Cotton v. Allstate Fire and Casualty Insurance Company (Cir. Ct. of Cook County, Chancery Div., Ill.; filed October 2020); Romaniak v. Esurance Property and Casualty Insurance Company (N.D. Ohio, filed December 2020); Keita v. Esurance Property and Casualty Insurance Company (17th Judicial Circuit, Broward County, Fla.; filed March 2021).

None of the courts in any of the pending matters has ruled on class certification.

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

similar allegations to those made in the stockholder derivative actions.

Biefeldt / IBEW Consolidated Action. Two separately filed stockholder derivative actions have been consolidated into a single proceeding that is pending in the Circuit Court for Cook County, Illinois, Chancery Division. The original complaint in the first-filed of those actions, Biefeldt v. Wilson, et al., was filed on August 3, 2017, in that court by a plaintiff alleging that she is a stockholder of the Company. On June 29, 2018, the court granted defendants’ motion to dismiss that complaint for failure to make a pre-suit demand on the Allstate Board but granted plaintiff permission to file an amended complaint. The original complaint in IBEW Local No. 98 Pension Fund v. Wilson, et al., was filed on April 12, 2018, in the same court by another plaintiff alleging to be a stockholder of the Company. After the court issued its dismissal decision in the Biefeldt action, plaintiffs agreed to consolidate the two actions and filed a consolidated amended complaint naming as defendants the Company’s chairman, president and chief executive officer, its former president, and certain present or former members of the board of directors. In that complaint, plaintiffs allege that the directors and officer defendants breached their fiduciary duties to the Company in connection with allegedly material misstatements or omissions concerning the Company’s automobile insurance claim frequency statistics and the reasons for a claim frequency increase for Allstate brand auto insurance between October 2014 and August 3, 2015. The factual allegations are substantially similar to those at issue in In re The Allstate Corp. Securities Litigation. Plaintiffs further allege that a senior officer and several outside directors engaged in stock option exercises allegedly while in possession of material nonpublic information. Plaintiffs seek, on behalf of the Company, an unspecified amount of damages and various forms of equitable relief. Defendants moved to dismiss the consolidated complaint on September 24, 2018 for failure to make a demand on the Allstate Board. On May 14, 2019, the court granted defendants’ motion to dismiss the complaint, but allowed plaintiffs leave to file a second consolidated amended complaint which they filed on September 17, 2019. Defendants moved to dismiss the complaint on November 1, 2019 for failure to make a demand on the Allstate Board. The court subsequently requested supplemental briefing on the motion which concluded on February 1, 2021. On February 24, 2021, the court dismissed the second amended consolidated complaint with prejudice. Plaintiffs filed a notice of appeal on March 26, 2021.

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

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

Mims v. Wilson, et al., is an additional stockholder derivative action filed on February 12, 2020 in the United States District Court for the Northern District of Illinois. Plaintiff alleges that she previously made a demand on the Allstate board of directors and seeks, on behalf of the Company, an unspecified amount of damages and various forms of equitable relief. The complaint names as defendants the Company’s chairman, president and chief executive officer, its former president, its former vice chairman, and certain present or former members of the board of directors. The complaint alleges breaches of fiduciary duty and unjust enrichment based on allegations similar to those asserted in In re The Allstate Corp. Securities Litigation. On February 20, 2020, the Allstate board of directors appointed a special committee to investigate the allegations in plaintiff’s demand. The Company moved to dismiss the complaint on August 24, 2020 and on December 8, 2020, the court granted defendants’ motion, and dismissed the complaint with prejudice. On January 5, 2021, plaintiff filed a motion to alter the judgment and requested leave to file an amended complaint and defendants opposed the motion. On February 10, 2021, the court denied plaintiff’s motion to alter the judgment. No appeal was filed.

In re The Allstate Corp. Securities Litigation is a certified class action filed on November 11, 2016 in the United States District Court for the Northern District of Illinois against the Company and two of its officers asserting claims under the federal securities laws. Plaintiffs allege that they purchased Allstate common stock during the class period and suffered damages as the result of the conduct alleged. Plaintiffs seek an

unspecified amount of damages, costs, attorney’s fees, and other relief as the court deems appropriate. Plaintiffs allege that the Company and certain senior officers made allegedly material misstatements or omissions concerning claim frequency statistics and the reasons for a claim frequency increase for Allstate brand auto insurance between October 2014 and August 3, 2015.

Plaintiffs further allege that a senior officer engaged in stock option exercises during that time allegedly while in possession of material nonpublic information about Allstate brand auto insurance claim frequency. The Company, its chairman, president and chief executive officer, and its former president are the named defendants. After the court denied their motion to dismiss on February 27, 2018, defendants answered the complaint, denying plaintiffs’ allegations that there was any misstatement or omission or other misconduct. On June 22, 2018, plaintiffs filed their motion for class certification. The court allowed the lead plaintiffs to amend their complaint to add the City of Providence Employee Retirement System as a proposed class representative and on September 12, 2018, the amended complaint was filed. On March 26, 2019, the court granted plaintiffs’ motion for class certification and certified a class consisting of all persons who purchased Allstate common stock between October 29, 2014 and August 3, 2015. On April 9, 2019, defendants filed with the U.S. Court of Appeals for the Seventh Circuit a petition for permission to appeal this ruling and the Seventh Circuit granted that petition on April 25, 2019. On July 16, 2020, the Seventh Circuit vacated the class certification order and remanded the matter for further consideration by the district court. Discovery in this matter concluded on October 5, 2020. On December 21, 2020, the district court again granted plaintiffs’ motion for class certification and certified a class consisting of all persons who purchased Allstate common stock between October 29, 2014 and August 3, 2015. On January 4, 2021, defendants filed with the Seventh Circuit a petition for permission to appeal this ruling. The petition was denied on January 28, 2021.

The parties concluded briefing Daubert motions on April 22, 2021.

Benefit Plans

3 Months Ended

Mar. 31, 2021

Retirement Benefits [Abstract]

Benefit Plans


Note 14			Benefit Plans


Components of net cost (benefit) for pension and other postretirement plans
	Three months ended March 31,
($ in millions)		2021		2020
Pension benefits
Service cost		$	26	$	28
Interest cost		46		56
Expected return on plan assets		(117)		(104)
Amortization of prior service credit		(13)		(14)

Costs and expenses		(58)		(34)
Remeasurement of projected benefit obligation		(512)		(116)
Remeasurement of plan assets		221		434
Remeasurement (gains) losses		(291)		318
Pension net (benefit) cost		$	(349)	$	284

Postretirement benefits
Service cost		$	—	$	1
Interest cost		2		3
Amortization of prior service credit		(6)		(1)

Costs and expenses		(4)		3
Remeasurement of projected benefit obligation		(19)		—
Remeasurement of plan assets		—		—
Remeasurement (gains) losses		(19)		—
Postretirement net (benefit) cost		$	(23)	$	3

Pension and postretirement benefits
Costs and expenses		$	(62)	$	(31)
Remeasurement (gains) losses		(310)		318
Total net (benefit) cost		$	(372)	$	287

Differences between expected and actual returns on plan assets and changes in assumptions affect the Company’s pension and other postretirement obligations, plan assets and expenses.

Pension and other postretirement service cost, interest cost, expected return on plan assets and amortization of prior service credit are reported in property and casualty insurance claims and claims expense, operating costs and expenses, net investment income and (if applicable) restructuring and related charges on the Condensed Consolidated Statement of Operations.


Pension and postretirement benefits remeasurement gains and losses
	Three months ended March 31,
($ in millions)		2021		2020
Remeasurement of projected benefit obligation (gains) losses:
Discount rate		$	(417)	$	(36)
Other assumptions		(114)		(80)
Remeasurement of plan assets (gains) losses		221		434
Remeasurement (gains) losses		$	(310)	$	318

Remeasurement gains for the first quarter of 2021 primarily related to an increase in the discount rate and changes in actuarial assumptions, partially offset by unfavorable asset performance compared to the expected return on plan assets.

The weighted average discount rate used to measure the benefit obligation increased to 3.13% at March 31, 2021 compared to 2.51% at December 31, 2020 resulting in gains for the first quarter of 2021.

Remeasurement gains for other assumptions in the first quarter of 2021 are primarily related to an increase in the long-term lump sum interest rate, partially offset by a remeasurement loss from an increase in the long-term cash balance interest crediting rate.

For the first quarter of 2021, the actual return on plan assets was lower than the expected return due to higher market yields resulting in lower fixed income valuations partially offset by strong equity performance.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 55
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=118257860&loc=d3e4179-114921

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 715
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/topic&trid=2235017

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

Supplemental Cash Flow Information

3 Months Ended

Mar. 31, 2021

Supplemental Cash Flow Information [Abstract]

Supplemental Cash Flow Information


Note 15			Supplemental Cash Flow Information

Non-cash investing activities include $14 million and $20 million related to mergers and exchanges completed with equity securities for the three months ended March 31, 2021 and 2020, respectively.

Non-cash financing activities include $50 million and $51 million related to the issuance of Allstate common shares for vested equity awards for the three months ended March 31, 2021 and 2020, respectively.

Cash flows used in operating activities in the Condensed Consolidated Statements of Cash Flows include cash paid for operating leases related to amounts included in the measurement of lease liabilities of $46 million and $39 million for the three months ended March 31, 2021 and 2020, respectively.

Non-cash operating activities include $103 million and $31 million related to right-of-use (“ROU”) assets obtained in exchange for lease obligations for the three months ended March 31, 2021 and 2020, respectively.

Liabilities for collateral received in conjunction with the Company’s securities lending program and OTC and cleared derivatives are reported in other liabilities and accrued expenses or other investments. The accompanying cash flows are included in cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows along with the activities resulting from management of the proceeds, as follows:


($ in millions)	Three months ended March 31,
	2021		2020

Net change in proceeds managed

Net change in short-term investments	$	(183)	$	370
Operating cash flow (used) provided	(183)		370
Net change in cash	1		—
Net change in proceeds managed	$	(182)	$	370

Cash flows from operating activities
Net change in liabilities
Liabilities for collateral, beginning of period	$	(914)	$	(1,298)
Liabilities for collateral, end of period	(1,096)		(928)
Operating cash flow provided (used)	$	182	$	(370)

Other Comprehensive Income

3 Months Ended

Mar. 31, 2021

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

Other Comprehensive Income


Note 16			Other Comprehensive Income


Components of other comprehensive income (loss) on a pre-tax and after-tax basis
($ in millions)	Three months ended March 31,
	2021						2020
	Pre-tax		Tax		After-tax		Pre-tax		Tax		After-tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$	(1,718)	$	364	$	(1,354)	$	(1,433)	$	303	$	(1,130)
Less: reclassification adjustment of realized capital gains and losses	185		(39)		146		287		(60)		227
Unrealized net capital gains and losses	(1,903)		403		(1,500)		(1,720)		363		(1,357)
Unrealized foreign currency translation adjustments	43		(9)		34		(49)		10		(39)


Unamortized pension and other postretirement prior service credit (1)	(19)		4		(15)		6		(2)		4
Other comprehensive (loss) income	$	(1,879)	$	398	$	(1,481)	$	(1,763)	$	371	$	(1,392)

(1) Represents prior service credits reclassified out of other comprehensive income and amortized into operating costs and expenses.

General (Policies)	3 Months Ended
General (Policies)	Mar. 31, 2021
General [Abstract]
Basis of presentation	Basis of presentation The accompanying condensed consolidated financial statements include the accounts of The Allstate Corporation (the “Corporation”) and its wholly owned subsidiaries, primarily Allstate Insurance Company (“AIC”), a property and casualty insurance company with various property and casualty and life and investment subsidiaries (collectively referred to as the “Company” or “Allstate”) and variable interest entities in which the Company is considered a primary beneficiary. These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The condensed consolidated financial statements and notes as of March 31, 2021 and for the three month periods ended March 31, 2021 and 2020 are unaudited. The condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring accruals) which are, in the opinion of management, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods. These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2020. The results of operations for the interim periods should not be considered indicative of results to be expected for the full year. All significant intercompany accounts and transactions have been eliminated.
New Accounting Pronouncements	Adopted accounting standards Simplifications to the Accounting for Income Taxes Effective January 1, 2021, the Company adopted the new Financial Accounting Standards Board (“FASB”) guidance which simplified the accounting for income taxes by eliminating certain exceptions and clarifying certain guidance. The adoption had an immaterial impact on the Company’s results of operations and financial position. Changes to the Disclosure Requirements for Defined Benefit Plans Effective January 1, 2021, the Company adopted new FASB guidance to modify certain annual disclosure requirements for defined benefit plans. New disclosures include the weighted-average interest crediting rates for cash balance plans and other plans with interest crediting rates and explanations for significant gains and losses related to changes in the benefit obligation during the reporting period. Disclosures to be eliminated include amounts expected to be reclassified out of AOCI and into the income statement in the coming year and the anticipated impact of a one-percentage point change in the assumed health care cost trend rate on service and interest cost and on the accumulated benefit obligation. The impacts of adoption are to the Company’s annual disclosures only. Significant accounting policies Consolidation of Variable Interest Entities (“VIEs”) A VIE is a legal entity that does not have sufficient equity at risk to finance its activities without additional financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not participate in the gains and losses of the entity. The Company consolidates VIEs in which the Company is deemed the primary beneficiary. The primary beneficiary is the entity that has both (1) the power to direct the activities of the VIE that most significantly affect that entity’s economic performance and (2) the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. Discontinued Operations and Held for Sale A business is classified as held for sale when management having the authority to approve the action commits to a plan to sell the business, the sale is probable to occur during the next 12 months at a price that is reasonable in relation to its current fair value and certain other criteria are met. A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. When the carrying amount of the business exceeds its estimated fair value less cost to sell, a loss is recognized and updated each reporting period as appropriate. The results of operations of business classified as held for sale are reported as discontinued operations if the disposal represents a strategic shift that will have a major effect on the entity’s operations and financial results. The disposal of a reportable segment generally qualifies for discontinued operations presentation. When a business is identified for discontinued operations reporting: •Results for prior periods are retrospectively reclassified as discontinued operations •Results of operations are reported in a single line, net of tax, in the Condensed Consolidated Statements of Operations •Assets and liabilities are reported as held for sale in the Condensed Consolidated Statements of Financial Position in the period in which the business is classified as held for sale Additional details by major classification of operating results and financial position are included in Note 3. Pending accounting standards Accounting for Long-Duration Insurance Contracts In August 2018, the FASB issued guidance revising the accounting for certain long-duration insurance contracts. As disclosed in Note 3, the Company entered into agreements to sell substantially all of its life and annuity business in scope of the new standard. The Company’s reserves and deferred policy acquisition costs (“DAC”) for certain voluntary and individual life and accident and health insurance products not held for sale are subject to the new guidance. Under the new guidance, measurement assumptions, including those for mortality, morbidity and policy terminations, will be required to be reviewed at least annually, and updated as appropriate. The effects of updating 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 that is updated through OCI at each reporting date. Current GAAP requires the measurement of 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 is effective for financial statements issued for reporting periods beginning after December 15, 2022 and restatement of prior periods presented is required. The new guidance will be applied to affected contracts and DAC on the basis of existing carrying amounts at the earliest period presented. The Company is evaluating the anticipated impacts of applying the new guidance to both retained income and AOCI and does not anticipate the financial statement impact of adopting the new guidance to be material to the Company’s results of operations or financial position, assuming the dispositions of Allstate Life Insurance Company and Allstate Life Insurance Company of New York are completed.
Earnings per common share	Basic earnings per common share is computed using the weighted average number of common shares outstanding, including vested unissued participating restricted stock units. Diluted earnings per common share is computed using the weighted average number of common and dilutive potential common shares outstanding. For the Company, dilutive potential common shares consist of outstanding stock options and unvested non-participating restricted stock units and contingently issuable performance stock awards. The effect of dilutive potential common shares does not include the effect of options with an anti-dilutive effect on earnings per common share because their exercise prices exceed the average market price of Allstate common shares during the period or for which the unrecognized compensation cost would have an anti-dilutive effect.

Earnings per Common Share (Tables)

3 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Computation of basic and diluted earnings per common share


Computation of basic and diluted earnings per common share
(In millions, except per share data)	Three months ended March 31,
		2021		2020
Numerator:

Net income from continuing operations		$	2,406	$	837
Less: Net loss attributable to noncontrolling interest		(6)		—
Net income from continuing operations attributable to Allstate		2,412		837
Less: Preferred stock dividends		27		36
Net income from continuing operations applicable to common shareholders		2,385		801
Loss from discontinued operations, net of tax		(3,793)		(288)
Net (loss) income applicable to common shareholders		$	(1,408)	$	513

Denominator:

Weighted average common shares outstanding		302.5		317.4
Effect of dilutive potential common shares:
Stock options		2.5		3.3
Restricted stock units (non-participating) and performance stock awards		1.4		1.7
Weighted average common and dilutive potential common shares outstanding		306.4		322.4

Earnings per common share applicable to common shareholders
Basic
Continuing operations		$	7.88	$	2.52
Discontinued operations		(12.53)		(0.90)
Total		$	(4.65)	$	1.62

Diluted
Continuing operations		$	7.78	$	2.48
Discontinued operations		(12.38)		(0.89)
Total		$	(4.60)	$	1.59

Anti-dilutive options excluded from diluted earnings per common share		2.2		0.8

Acquisition and Disposition (Table)

3 Months Ended

Mar. 31, 2021

Business Combinations [Abstract]

Schedule of recognized identified assets acquired and liabilities assumed


Assets and liabilities recognized in acquisition (1)
($ in millions)	January 4, 2021
Assets
Investments	$	4,957
Cash	402
Premiums and other receivables, net	1,545
Deferred acquisition costs (value of business acquired)	317
Reinsurance recoverables, net	1,219
Intangible assets	1,199
Other assets	734
Goodwill (2)	980
Total assets	11,353

Liabilities
Reserve for property and casualty insurance claims and claims expense	2,774
Reserve for future policy benefits	189
Unearned premiums	2,245
Reinsurance payable	364
Debt (3)	592
Deferred tax liabilities	177
Other liabilities	701
Total liabilities	$	7,042

Schedule of indefinite-lived intangible assets


Intangible assets by type
($ in millions)	January 4, 2021
Distribution and customer relationships	$	795
Trade names	102
Licenses	97
Technology and other	205
Total	$	1,199

Schedule of finite-lived intangible assets, future amortization expense


Estimated amortization expense of National General intangible assets for the next five years and thereafter
($ in millions)
2022	$	218
2023	185
2024	135
2025	103
2026	70
Thereafter	140
Total amortization	$	851

Schedule of disposal groups, including discontinued operations


Financial results from discontinued operations
	Three months ended March 31,
($ in millions)	2021		2020
Revenues
Life premiums and contract charges	$	340	$	335

Net investment income	439		175
Realized capital gains (losses)	79		(300)
Total revenues	858		210

Costs and expenses
Life contract benefits	410		360
Interest credited to contractholder funds	85		123
Amortization of DAC	36		36
Operating costs and expenses	55		61
Restructuring and related charges	19		1
Total costs and expenses	605		581

Amortization of deferred gain on reinsurance	2		1

Income (loss) from discontinued operations before income tax expense	255		(370)

Income tax expense (benefit)	50		(82)

Income (loss) from discontinued operations, net of tax	205		(288)

Loss on disposition of operations	(4,418)		—
Income tax benefit	(420)		—
Loss on disposition, net of tax	(3,998)		—

Loss from discontinued operations, net of tax	$	(3,793)	$	(288)


Major classes of assets and liabilities to be transferred in transactions
($ in millions)	March 31, 2021		December 31, 2020
Assets
Investments
Fixed income securities, at fair value (amortized cost, net $23,511 and $21,417)	$	25,073	$	23,789
Equity securities, at fair value (cost $1,191 and $1,113)	1,643		1,542
Mortgage loans, net	3,062		3,329
Limited partnership interests	1,942		3,046
Short-term, at fair value (amortized cost $1,652 and $993)	1,652		993
Other, net	936		1,998
Total investments	34,308		34,697
Cash	89		66
Deferred policy acquisitions costs	1,039		925
Reinsurance recoverables, net	1,982		2,005
Accrued investment income	248		229
Other assets	236		865
Separate accounts	3,339		3,344
Assets held for sale	41,241		42,131
Less: loss accrual	4,412		—
Total assets held for sale	$	36,829	$	42,131

Liabilities
Reserve for future policy benefits	$	11,581	$	11,740
Contractholder funds	16,112		16,356

Deferred income taxes	857		973
Other liabilities and accrued expenses	1,494		912
Separate accounts	3,339		3,344
Total liabilities held for sale	$	33,383	$	33,325


Cash flows from discontinued operations
	Three months ended March 31,
($ in millions)	2021		2020
Net cash provided by operating activities from discontinued operations	$	64	$	111
Net cash provided by investing activities from discontinued operations	88		85

- Definition

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

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+ Details

Reportable Segments (Tables)

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Schedule of business segments net income disclosures


Reportable segments financial performance
	Three months ended March 31,
($ in millions)	2021		2020
Underwriting income (loss) by segment
Allstate Protection	$	1,660	$	1,351
Run-off Property-Liability	(3)		(3)

Adjusted net income (loss) by segment, after-tax
Protection Services	49		37
Allstate Health and Benefits	65		24
Corporate and Other	(123)		(107)

Reconciling items
Property-Liability net investment income	673		202
Realized capital gains (losses)	426		(162)
Pension and other postretirement remeasurement gains (losses)	310		(318)
Business combination expenses and amortization of purchased intangibles	(56)		(27)
Income tax expense on reconciling items	(622)		(196)
Total reconciling items	731		(501)

Loss from discontinued operations	(4,163)		(370)
Income tax benefit from discontinued operations	370		82
Total from discontinued operations	$	(3,793)	$	(288)

Less: Net loss attributable to noncontrolling interest	(6)		—

Net (loss) income applicable to common shareholders	$	(1,408)	$	513

Schedule of business segments revenue disclosures


Reportable segments revenue information
($ in millions)	Three months ended March 31,
	2021		2020
Property-Liability
Insurance premiums
Auto	$	6,809	$	6,155
Homeowners	2,392		2,037
Other personal lines	505		471
Commercial lines	190		218
Allstate Protection	9,896		8,881
Run-off Property-Liability	—		—
Total Property-Liability insurance premiums	9,896		8,881
Other revenue	385		213
Net investment income	673		202
Realized capital gains (losses)	404		(103)
Total Property-Liability	11,358		9,193

Protection Services
Protection plans	260		206
Roadside assistance	47		51
Finance and insurance products	104		97
Intersegment premiums and service fees (1)	41		38
Other revenue (2)	90		52
Net investment income	10		10
Realized capital gains (losses)	10		(24)
Total Protection Services	562		430

Allstate Health and Benefits
Employer voluntary benefits	263		282
Group health	83		—
Individual accident and health	109		—
Other revenue	80		—
Net investment income	19		20
Realized capital gains (losses)	2		(14)
Total Allstate Health and Benefits	556		288

Corporate and Other
Net investment income	6		14
Realized capital gains (losses)	10		(21)
Total Corporate and Other	16		(7)

Intersegment eliminations (1)	(41)		(38)
Consolidated revenues	$	12,451	$	9,866

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

(2)Other revenue is primarily related to Arity, Allstate Identity Protection, Allstate Dealer Services, and Allstate Protection Plans.

Investments (Tables)

3 Months Ended

Mar. 31, 2021

Investments [Abstract]

Portfolio composition


Portfolio composition

($ in millions)	March 31, 2021		December 31, 2020
Fixed income securities, at fair value	$	40,594	$	42,565
Equity securities, at fair value	3,154		3,168
Mortgage loans, net	902		746
Limited partnership interests	6,367		4,563
Short-term investments, at fair value	6,017		6,807
Other, net	3,042		1,691
Total	$	60,076	$	59,540

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


Amortized cost, gross unrealized gains (losses) and fair value for fixed income securities
($ in millions)	Amortized cost, net		Gross unrealized				Fair value
			Gains		Losses
March 31, 2021
U.S. government and agencies	$	3,103	$	26	$	(19)	$	3,110
Municipal	7,226		310		(36)		7,500
Corporate	27,145		1,045		(187)		28,003
Foreign government	977		16		(8)		985
ABS	934		11		(2)		943
MBS	52		1		—		53
Total fixed income securities	$	39,437	$	1,409	$	(252)	$	40,594



December 31, 2020
U.S. government and agencies	$	2,058	$	50	$	(1)	$	2,107
Municipal	7,100		480		(2)		7,578
Corporate	29,057		1,986		(26)		31,017
Foreign government	921		37		—		958
ABS	840		9		(3)		846
MBS	58		1		—		59
Total fixed income securities	$	40,034	$	2,563	$	(32)	$	42,565

Schedule for fixed income securities based on contractual maturities


Scheduled maturities for fixed income securities
($ in millions)	March 31, 2021
	Amortized cost, net		Fair value
Due in one year or less	$	1,279	$	1,291
Due after one year through five years	18,216		18,810
Due after five years through ten years	13,464		13,818
Due after ten years	5,492		5,679
	38,451		39,598
ABS and MBS	986		996
Total	$	39,437	$	40,594

Schedule of net investment income


Net investment income
($ in millions)	Three months ended March 31,
		2021		2020
Fixed income securities		$	301	$	298
Equity securities		14		10
Mortgage loans		10		9
Limited partnership interests		378		(77)
Short-term investments		1		11
Other		41		31
Investment income, before expense		745		282
Investment expense		(37)		(36)
Net investment income		$	708	$	246

Schedule of realized capital gains and losses by asset type


Realized capital gains (losses) by asset type
($ in millions)	Three months ended March 31,
		2021		2020
Fixed income securities		$	183	$	374
Equity securities		164		(510)
Mortgage loans		6		(10)
Limited partnership interests		4		(86)
Derivatives		11		78
Other		58		(8)
Realized capital gains (losses)		$	426	$	(162)

Schedule of realized capital gains and losses by transaction type


Realized capital gains (losses) by transaction type
($ in millions)	Three months ended March 31,
		2021		2020
Sales		$	246	$	388
Credit losses		2		(37)

Valuation of equity investments (1)		167		(591)
Valuation and settlements of derivative instruments		11		78
Realized capital gains (losses)		$	426	$	(162)

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

Gross realized gains (losses) on sales of fixed income securities


Gross realized gains (losses) on sales of fixed income securities
($ in millions)	Three months ended March 31,
		2021		2020
Gross realized gains		$	245	$	435
Gross realized losses		(64)		(59)

Valuation changes included in net income for investments


Net appreciation (decline) recognized in net income
($ in millions)	Three months ended March 31,
		2021		2020
Equity securities		$	125	$	(417)

Limited partnership interests carried at fair value		141		(28)
Total		$	266	$	(445)

Schedule of credit losses on fixed income securities recognized in earnings


Credit losses recognized in net income
($ in millions)	Three months ended March 31,
		2021		2020
Assets
Fixed income securities:

Corporate		$	1	$	(1)
ABS		1		—
MBS		—		(1)
Total fixed income securities		2		(2)
Mortgage loans		6		(9)
Limited partnership interests		—		(5)
Other investments
Bank loans		(6)		(20)

Total credit losses by asset type		$	2	$	(36)

Liabilities
Commitments to fund commercial mortgage loans, bank loans and agent loans		—		(1)
Total		$	2	$	(37)

Schedule of unrealized net capital gains and losses


Unrealized net capital gains and losses included in AOCI
($ in millions)	Fair value		Gross unrealized				Unrealized net gains (losses)
March 31, 2021			Gains		Losses
Fixed income securities	$	40,594	$	1,409	$	(252)	$	1,157

Short-term investments	6,017		—		—		—
Derivative instruments	—		—		(3)		(3)
Equity method of accounting (“EMA”) limited partnerships (1)							(1)
Investments classified as held for sale							1,562
Unrealized net capital gains and losses, pre-tax							2,715
Amounts recognized for:
Insurance reserves (2)							(358)
DAC and DSI (3)							(228)
Reclassification of noncontrolling interest							4
Amounts recognized							(582)
Deferred income taxes							(453)
Unrealized net capital gains and losses, after-tax							$	1,680

December 31, 2020
Fixed income securities	$	42,565	$	2,563	$	(32)	$	2,531
Short-term investments	6,807		—		—		—
Derivative instruments	—		—		(3)		(3)
EMA limited partnerships							(1)
Investments classified as held for sale							2,369
Unrealized net capital gains and losses, pre-tax							4,896
Amounts recognized for:
Insurance reserves							(496)
DAC and DSI							(364)
Amounts recognized							(860)
Deferred income taxes							(856)
Unrealized net capital gains and losses, after-tax							$	3,180

Schedule of change in unrealized net capital gains and losses


Change in unrealized net capital gains (losses)
($ in millions)	Three months ended March 31, 2021
Fixed income securities	$	(1,374)
Short-term investments	—
Derivative instruments	—
EMA limited partnerships	—
Investments classified as held for sale	(807)
Total	(2,181)
Amounts recognized for:
Insurance reserves	138
DAC and DSI	136
Reclassification of noncontrolling interest	4
Amounts recognized	278
Deferred income taxes	403
Decrease in unrealized net capital gains and losses, after-tax	$	(1,500)

Carrying value for limited partnership interests


Carrying value for limited partnership interests
($ in millions)	March 31, 2021						December 31, 2020
	EMA		Fair Value		Total		EMA		Fair Value		Total
Private equity	$	3,935	$	1,295	$	5,230	$	2,667	$	988	$	3,655
Real estate	816		68		884		623		74		697
Other (1)	253		—		253		211		—		211
Total (2)	$	5,004	$	1,363	$	6,367	$	3,501	$	1,062	$	4,563

(1)Other consists of certain limited partnership interests where the underlying assets are predominately public equity and debt securities.

Schedule of other investments by type


Other investments by asset type
($ in millions)	March 31, 2021		December 31, 2020
Bank loans, net	$	1,260	$	772
Real estate	871		659
Policy loans	164		181
Agent loans, net	607		—
Derivatives	22		20
Other	118		59
Total (1)	$	3,042	$	1,691

Allowance for credit loss


Rollforward of credit loss allowance for fixed income securities
	Three months ended March 31,
($ in millions)		2021		2020
Beginning balance		$	(3)	$	—
Credit losses on securities for which credit losses not previously reported		—		(4)
Net decreases related to credit losses previously reported		2		—
Reduction of allowance related to sales		—		—



Ending balance (1) (2)		$	(1)	$	(4)

(2)Includes $1 million and $2 million of credit loss allowance for fixed income securities that are classified as held for sale as of March 31, 2021 and 2020, respectively.


Rollforward of credit loss allowance for mortgage loans
	Three months ended March 31,
($ in millions)		2021		2020
Beginning balance		$	(67)	$	(3)
Cumulative effect of change in accounting principle		—		(42)
Net decreases (increases) related to credit losses		22		(40)
Write-offs		—		—

Ending balance (1)		$	(45)	$	(85)

(1)Includes $31 million and $68 million of credit loss allowance for mortgage loans that are classified as held for sale as of March 31, 2021 and 2020, respectively.


Rollforward of credit loss allowance for bank loans
($ in millions)	Three months ended March 31,
		2021		2020
Beginning balance		$	(67)	$	—
Cumulative effect of change in accounting principle		—		(53)
Net increases related to credit losses		(2)		(27)
Reduction of allowance related to sales		9		1
Write-offs		—		—

Ending balance (1)		$	(60)	$	(79)

(1)Includes $11 million and $22 million of credit loss allowance for bank loans that are classified as held for sale as of March 31, 2021 and 2020, respectively.

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


Gross unrealized losses and fair value by type and length of time held in a continuous unrealized loss position
($ 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
March 31, 2021
Fixed income securities
U.S. government and agencies	108	$	2,084	$	(19)	—	$	—	$	—	$	(19)
Municipal	804	1,398		(36)		1	5		—		(36)
Corporate	1,003	6,715		(176)		25	121		(11)		(187)
Foreign government	64	289		(8)		—	—		—		(8)
ABS	15	79		(2)		13	50		—		(2)
MBS	15	2		—		55	—		—		—

Total fixed income securities	2,009	$	10,567	$	(241)	94	$	176	$	(11)	$	(252)
Investment grade fixed income securities	1,821	$	9,206	$	(207)	69	$	67	$	(1)	$	(208)
Below investment grade fixed income securities	188	1,361		(34)		25	109		(10)		(44)
Total fixed income securities	2,009	$	10,567	$	(241)	94	$	176	$	(11)	$	(252)

December 31, 2020
Fixed income securities
U.S. government and agencies	26	$	215	$	(1)	—	$	—	$	—	$	(1)
Municipal	43	116		(2)		—	—		—		(2)
Corporate	107	730		(21)		14	46		(5)		(26)
Foreign government	7	7		—		—	—		—		—
ABS	21	157		(2)		12	43		(1)		(3)
MBS	11	—		—		57	—		—		—
Total fixed income securities	215	$	1,225	$	(26)	83	$	89	$	(6)	$	(32)
Investment grade fixed income securities	146	$	855	$	(8)	66	$	45	$	—	$	(8)
Below investment grade fixed income securities	69	370		(18)		17	44		(6)		(24)
Total fixed income securities	215	$	1,225	$	(26)	83	$	89	$	(6)	$	(32)

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


Gross unrealized losses by unrealized loss position and credit quality as of March 31, 2021
($ in millions)	Investment grade		Below investment grade		Total
Fixed income securities with unrealized loss position less than 20% of amortized cost, net (1) (2)	$	(207)	$	(34)	$	(241)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost, net (3) (4)	(1)		(10)		(11)
Total unrealized losses	$	(208)	$	(44)	$	(252)

(1)Below investment grade fixed income securities include $30 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, net, the degree of which suggests that these securities do not pose a high risk of having credit losses.

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

Mortgage loans amortized cost by debt service coverage ratio distribution and year of origination


Mortgage loans amortized cost by debt service coverage ratio distribution and year of origination
($ in millions)	March 31, 2021														December 31, 2020
	2016 and prior		2017		2018		2019		2020		Current		Total		Total
Below 1.0	$	15	$	—	$	—	$	—	$	—	$	—	$	15	$	—
1.0 - 1.25	29		—		13		23		10		—		75		46
1.26 - 1.50	105		36		24		130		—		—		295		201
Above 1.50	134		45		119		166		67		—		531		507
Amortized cost before allowance	$	283	$	81	$	156	$	319	$	77	$	—	$	916	$	754
Allowance													(14)		(8)
Amortized cost, net													$	902	$	746

Bank loans amortized cost by credit quality and year of origination


Bank loans amortized cost by credit rating and year of origination
($ in millions)	March 31, 2021														December 31, 2020
	2016 and prior		2017		2018		2019		2020		Current		Total		Total
BBB	$	—	$	5	$	7	$	11	$	8	$	29	$	60	$	38
BB	9		22		30		42		36		172		311		168
B	13		68		86		77		139		389		772		456
CCC and below	11		28		32		55		27		13		166		161




Amortized cost before allowance	$	33	$	123	$	155	$	185	$	210	$	603	$	1,309	$	823
Allowance													(49)		(51)
Amortized cost, net													$	1,260	$	772

Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

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


Assets and liabilities measured at fair value
	March 31, 2021
($ in millions)	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Counterparty and cash collateral netting			Total
Assets
Fixed income securities:
U.S. government and agencies	$	3,074		$	36		$	—					$	3,110
Municipal	—			7,482			18						7,500
Corporate - public	—			18,818			43						18,861
Corporate - privately placed	—			9,037			105						9,142
Foreign government	—			985			—						985
ABS	—			864			79						943
MBS	—			30			23						53
Total fixed income securities	3,074			37,252			268						40,594
Equity securities	2,318			426			410						3,154
Short-term investments	3,530			2,487			—						6,017
Other investments	—			39			3			$	(17)		25

Other assets	1			—			—						1
Assets held for sale	6,380			25,319			170			(7)			31,862
Total recurring basis assets	15,303			65,523			851			(24)			81,653

Total assets at fair value	$	15,303		$	65,523		$	851		$	(24)		$	81,653
% of total assets at fair value	18.7		%	80.3		%	1.0		%	—		%	100.0		%

Investments reported at NAV													1,363
Assets held for sale at NAV													562
Total													$	83,578
Liabilities

Other liabilities	$	(1)		$	(21)		$	—		$	13		$	(9)
Liabilities held for sale	—			(97)			(463)			4			(556)
Total recurring basis liabilities	(1)			(118)			(463)			17			(565)

Total liabilities at fair value	$	(1)		$	(118)		$	(463)		$	17		$	(565)
% of total liabilities at fair value	0.2		%	20.9		%	81.9		%	(3.0)		%	100.0		%


Assets and liabilities measured at fair value
	December 31, 2020
($ in millions)	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Counterparty and cash collateral netting			Total
Assets
Fixed income securities:
U.S. government and agencies	$	2,061		$	45		$	—					$	2,106
Municipal	—			7,562			17						7,579
Corporate - public	—			21,885			67						21,952
Corporate - privately placed	—			9,002			63						9,065
Foreign government	—			958			—						958
ABS	—			794			52						846
MBS	—			32			27						59
Total fixed income securities	2,061			40,278			226						42,565
Equity securities	2,468			396			304						3,168
Short-term investments	6,549			223			35						6,807
Other investments	—			29			—			$	(9)		20

Other assets	1			—			—						1
Assets held for sale	6,488			23,103			267			(6)			29,852
Total recurring basis assets	17,567			64,029			832			(15)			82,413

Total assets at fair value	$	17,567		$	64,029		$	832		$	(15)		$	82,413
% of total assets at fair value	21.3		%	77.7		%	1.0		%	—		%	100.0		%

Investments reported at NAV													1,062
Assets held for sale at NAV													762
Total													$	84,237
Liabilities

Other liabilities	$	—		$	(34)		$	—		$	18		$	(16)
Liabilities held for sale	—			(119)			(516)			9			(626)
Total recurring basis liabilities	—			(153)			(516)			27			(642)

Total liabilities at fair value	$	—		$	(153)		$	(516)		$	27		$	(642)
% of total liabilities at fair value	—		%	23.8		%	80.4		%	(4.2)		%	100.0		%

Summary of quantitative information about the significant unobservable inputs

Quantitative information about the significant unobservable inputs used in Level 3 fair value measurements (1)

($ in millions)

Fair value

Valuation
technique

Unobservable
input

Range

Weighted
average

March 31, 2021

Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options

(435)

Stochastic cash flow model

Projected option cost

1.0 - 4.2%

2.83%

December 31, 2020

Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options

(483)

Stochastic cash flow model

Projected option cost

1.0 - 4.2%

2.80%

(1)These were included in the liabilities held for sale as of March 31, 2021 and December 31, 2020.

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


Rollforward of Level 3 assets and liabilities held at fair value during the three month period ended March 31, 2021
	Balance as of December 31, 2020		Total gains (losses) included in:				Transfers				Transfers to (from) held for sale										Balance as of March 31, 2021
($ in millions)			Net income		OCI		Into Level 3		Out of Level 3				Purchases		Sales		Issues		Settlements
Assets
Fixed income securities:

Municipal	$	17	$	—	$	—	$	—	$	—	$	—	$	3	$	—	$	—	$	(2)	$	18
Corporate - public	67		1		(3)		—		—		(6)		17		(33)		—		—		43
Corporate - privately placed	63		—		(1)		10		(7)		13		27		—		—		—		105
ABS	52		—		—		—		(32)		—		59		—		—		—		79
MBS	27		—		—		—		—		—		—		(4)		—		—		23



Total fixed income securities	226		1		(4)		10		(39)		7		106		(37)		—		(2)		268
Equity securities	304		16		—		—		—		92		5		(7)		—		—		410
Short-term investments	35		—		—		—		—		—		—		—		—		(35)		—
Other investments	—		—		—		—		—		—		3		—		—		—		3

Assets held for sale	267		1		—		3		(8)		(99)		11		(3)		—		(2)		170
Total recurring Level 3 assets	832		18		(4)		13		(47)		—		125		(47)		—		(39)		851
Liabilities

Liabilities held for sale	(516)		55		—		—		—		—		—		—		(8)		6		(463)
Total recurring Level 3 liabilities	$	(516)	$	55	$	—	$	—	$	—	$	—	$	—	$	—	$	(8)	$	6	$	(463)


Rollforward of Level 3 assets and liabilities held at fair value during the three month period ended March 31, 2020
	Balance as of December 31, 2019		Total gains (losses) included in:				Transfers												Balance as of March 31, 2020
($ in millions)			Net income		OCI		Into Level 3		Out of Level 3		Purchases		Sales		Issues		Settlements
Assets
Fixed income securities:

Municipal	$	22	$	—	$	(1)	$	—	$	—	$	—	$	(1)	$	—	$	(1)	$	19
Corporate - public	36		—		—		—		—		—		—		—		—		36
Corporate - privately placed	32		—		—		—		—		1		—		—		—		33
ABS	49		—		—		26		(49)		33		—		—		(27)		32
MBS	35		—		—		—		—		—		—		—		—		35

Total fixed income securities	174		—		(1)		26		(49)		34		(1)		—		(28)		155
Equity securities	255		(17)		—		—		—		1		—		—		—		239
Short-term investments	25		—		—		—		—		25		—		—		—		50


Assets held for sale	284		(12)		(1)		—		(25)		—		(10)		—		(3)		233
Total recurring Level 3 assets	738		(29)		(2)		26		(74)		60		(11)		—		(31)		677
Liabilities

Liabilities held for sale	(462)		48		—		—		—		—		—		(8)		5		(417)
Total recurring Level 3 liabilities	$	(462)	$	48	$	—	$	—	$	—	$	—	$	—	$	(8)	$	5	$	(417)


Total Level 3 gains (losses) included in net income
	Three months ended March 31,
($ in millions)		2021		2020
Net investment income		$	(1)	$	(14)
Realized capital gains (losses)		18		(3)

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


Valuation changes included in net income and OCI for Level 3 assets and liabilities held as of March 31,
($ in millions)	Three months ended March 31,
		2021		2020
Assets
Fixed income securities:

Corporate - public		$	1	$	—
Corporate - privately placed		—		—


Total fixed income securities		1		—
Equity securities		$	16	$	(17)


Assets held for sale		1		(12)
Total recurring Level 3 assets		$	18	$	(29)
Liabilities

Liabilities held for sale		$	55	$	48
Total recurring Level 3 liabilities		55		48
Total included in net income		$	73	$	19

Components of net income
Net investment income		$	(1)	$	(14)
Realized capital gains (losses)		18		(3)




Assets
Municipal		$	—	$	(1)
Corporate - public		(3)		—
Corporate - privately placed		(1)		—

Assets held for sale		—		(1)

Changes in unrealized net capital gains and losses reported in OCI		$	(4)	$	(2)

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


Financial instruments not carried at fair value
($ in millions)		March 31, 2021				December 31, 2020
Financial assets	Fair value level	Amortized cost, net		Fair value		Amortized cost, net		Fair value
Mortgage loans	Level 3	$	902	$	948	$	746	$	792
Bank loans	Level 3	1,260		1,286		772		803
Agent loans	Level 3	607		606		—		—
Assets held for sale	Level 3	3,278		3,484		4,206		4,440

Financial liabilities	Fair value level	Carrying value (1)		Fair value		Carrying value (1)		Fair value
Contractholder funds on investment contracts	Level 3	$	33	$	35	$	—	$	—
Long-term debt	Level 2	7,577		9,046		7,825		9,489
Liability for collateral	Level 2	1,096		1,096		914		914
Liabilities held for sale (2)	Level 3	8,099		8,950		8,130		9,424

(1)Represents the amounts reported on the Condensed Consolidated Statements of Financial Position.

(2)Includes certain liabilities for collateral measured at Level 2 fair value as of March 31, 2021 and December 31, 2020.

- Definition

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

+ References + Details

Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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


Summary of the volume and fair value positions of derivative instruments as of March 31, 2021
($ 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 not designated as accounting hedging instruments
Interest rate contracts



Futures	Other assets	n/a		614	$	—	$	—	$	—
Equity and index contracts
Options	Other investments	n/a		59	4		4		—
Futures	Other assets	n/a		1,142	1		1		—
Total return index contracts
Total return swap agreements – fixed income	Other investments	$	100	n/a	—		—		—

Foreign currency contracts
Foreign currency forwards	Other investments	20		n/a	—		—		—
Embedded derivative financial instruments
Other embedded derivative financial instruments	Other investments	750		n/a	—		—		—
Credit default contracts
Credit default swaps – buying protection	Other investments	33		n/a	(2)		—		(2)
Credit default swaps – selling protection	Other investments	900		n/a	18		18		—




Assets held for sale		15		2,485	155		155		—
Total asset derivatives		$	1,818	4,300	$	176	$	178	$	(2)

Liability derivatives


Derivatives not designated as accounting hedging instruments





Futures	Other liabilities & accrued expenses	n/a		3,560	$	(1)	$	—	$	(1)
Equity and index contracts

Futures	Other liabilities & accrued expenses	n/a		215	—		—		—




Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	$	543	n/a	5		17		(12)





Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	100		n/a	(7)		—		(7)
Credit default swaps – selling protection	Other liabilities & accrued expenses	5		n/a	—		—		—

Liabilities held for sale		2,340		2,670	(553)		7		(560)
Total liability derivatives		2,988		6,445	(556)		$	24	$	(580)
Total derivatives		$	4,806	10,745	$	(380)


Summary of the volume and fair value positions of derivative instruments as of December 31, 2020
($ 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

Futures	Other assets	n/a		290	$	—	$	—	$	—
Equity and index contracts
Options	Other investments	n/a		56	6		6		—
Futures	Other assets	n/a		905	1		1		—



Foreign currency contracts
Foreign currency forwards	Other investments	$	291	n/a	4		9		(5)
Embedded derivative financial instruments
Other embedded derivative financial instruments	Other investments	750		n/a	—		—		—
Credit default contracts
Credit default swaps – buying protection	Other investments	60		n/a	(3)		—		(3)
Credit default swaps – selling protection	Other investments	750		n/a	13		13		—




Assets held for sale		158		3,189	185		189		(4)
Total asset derivatives		$	2,009	4,440	$	206	$	218	$	(12)

Liability derivatives


Derivatives not designated as accounting hedging instruments
Interest rate contracts


Futures	Other liabilities & accrued expenses	n/a		705	$	—	$	—	$	—
Equity and index contracts

Futures	Other liabilities & accrued expenses	n/a		666	—		—		—
Total return index contracts
Total return swap agreements – fixed income	Other liabilities & accrued expenses	$	50	n/a	—		—		—

Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	250		n/a	(9)		1		(10)





Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	638		n/a	(16)		—		(16)
Credit default swaps – selling protection	Other liabilities & accrued expenses	4		n/a	—		—		—

Liabilities held for sale		2,240		2,737	(630)		1		(631)
Total liability derivatives		3,182		4,108	(655)		$	2	$	(657)
Total derivatives		$	5,191	8,548	$	(449)

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


Gross and net amounts for OTC derivatives (1)
($ in millions)			Offsets
	Gross amount		Counter-party netting		Cash collateral (received) pledged		Net amount on balance sheet		Securities collateral (received) pledged		Net amount
March 31, 2021
Asset derivatives	$	17	$	(19)	$	2	$	—	$	—	$	—
Liability derivatives	(15)		19		(6)		(2)		—		(2)

December 31, 2020
Asset derivatives	$	10	$	(9)	$	—	$	1	$	—	$	1
Liability derivatives	(19)		9		9		(1)		—		(1)

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

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


Gains (losses) from valuation and settlements reported on derivatives not designated as accounting hedges
($ in millions)	Realized capital gains (losses)		Operating costs and expenses		Total gain (loss) recognized in net income on derivatives
Three months ended March 31, 2021
Interest rate contracts	$	(1)	$	—	$	(1)
Equity and index contracts	(2)		16		14
Foreign currency contracts	10		—		10
Credit default contracts	4		—		4



Total	$	11	$	16	$	27












Three months ended March 31, 2020
Interest rate contracts	$	35	$	—	$	35
Equity and index contracts	33		(45)		(12)

Foreign currency contracts	25		—		25
Credit default contracts	(10)		—		(10)
Total return swaps - fixed income	(9)		—		(9)
Total return swaps - equity index	4		—		4
Total	$	78	$	(45)	$	33

Counterparty credit exposure by counterparty credit rating


OTC derivatives counterparty credit exposure by counterparty credit rating
($ in millions)	March 31, 2021							December 31, 2020
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+	1	$	189	$	8	$	—	1	$	186	$	4	$	—
A	1	149		2		—		—	—		—		—



Total	2	$	338	$	10	$	—	1	$	186	$	4	$	—

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

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

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


($ in millions)	March 31, 2021		December 31, 2020
Gross liability fair value of contracts containing credit-risk-contingent features	$	13	$	19
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(7)		(6)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	(4)		(13)
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$	2	$	—

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


CDS notional amounts by credit rating and fair value of protection sold
($ in millions)	Notional amount
	AAA		AA		A		BBB		BB and lower		Total		Fair value
March 31, 2021
Single name
Corporate debt	$	—	$	—	$	—	$	—	$	5	$	5	$	—


Index
Corporate debt	7		14		179		610		90		900		18
Total	$	7	$	14	$	179	$	610	$	95	$	905	$	18

December 31, 2020
Single name
Corporate debt	$	—	$	—	$	—	$	—	$	4	$	4	$	—


Index
Corporate debt	6		12		156		492		84		750		13
Total	$	6	$	12	$	156	$	492	$	88	$	754	$	13

Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of variable interest entities


Assets and liabilities of consolidated VIEs
($ in millions)	March 31, 2021
Assets
Investments
Fixed income securities, at fair value (amortized cost, net $286)	$	281
Short-term, at fair value (amortized cost $61)	61

Investments	342
Cash	8

Premium installment and other receivables, net	43
Reinsurance recoverables, net	112
Other assets	109
Total assets	614
Liabilities
Reserve for property and casualty insurance claims and claims expense	223
Unearned premiums	189
Other liabilities and expenses	229
Total liabilities	$	641

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

Reserve for Property and Casualty Insurance Claims and Claims Expense (Tables)

3 Months Ended

Mar. 31, 2021

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

Schedule of liability for unpaid claims and claims adjustment expense


Rollforward of the reserve for property and casualty insurance claims and claims expense
	Three months ended March 31,
($ in millions)	2021		2020
Balance as of January 1	$	27,610	$	27,712
Less recoverables (1)	(7,033)		(6,912)
Net balance as of January 1	20,577		20,800
National General acquisition as of January 4, 2021	1,797		—
Incurred claims and claims expense related to:
Current year	6,284		5,333
Prior years	(241)		8
Total incurred	6,043		5,341
Claims and claims expense paid related to:
Current year	(2,541)		(2,352)
Prior years	(3,731)		(3,554)
Total paid	(6,272)		(5,906)
Net balance as of March 31	22,145		20,235
Plus recoverables	9,269		6,913
Balance as of March 31	$	31,414	$	27,148

(1)Recoverables comprises reinsurance and indemnification recoverables.


Prior year reserve reestimates included in claims and claims expense (1)
	Three months ended March 31,
	Non-catastrophe losses				Catastrophe losses				Total
($ in millions)	2021		2020		2021 (2) (3)		2020		2021		2020
Auto	$	(17)	$	22	$	(19)	$	(9)	$	(36)	$	13
Homeowners	5		1		(208)		(8)		(203)		(7)
Other personal lines	—		(2)		(18)		(4)		(18)		(6)
Commercial lines	13		5		2		1		15		6
Run-off Property-Liability	1		2		—		—		1		2

Total prior year reserve reestimates	$	2	$	28	$	(243)	$	(20)	$	(241)	$	8

(1)Favorable reserve reestimates are shown in parentheses.

(3)Includes approximately $110 million favorable subrogation settlements arising from the Woolsey wildfire, which primarily impacted homeowners reestimates.

Reinsurance and indemnification (Tables)

3 Months Ended

Mar. 31, 2021

Reinsurance Disclosures [Abstract]

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


Effects of reinsurance ceded and indemnification programs on property and casualty premiums earned and accident and health insurance premiums and contract charges
($ in millions)	Three months ended March 31,
	2021		2020
Property and casualty insurance premiums earned	$	(508)	$	(289)
Accident and health insurance premiums and contract charges	(24)		(3)


Effects of reinsurance ceded and indemnification programs on property and casualty insurance claims and claims expense and accident and health insurance policy benefits
($ in millions)	Three months ended March 31,
	2021		2020
Property and casualty insurance claims and claims expense (1) (2)	$	(1,593)	$	(131)
Accident and health insurance policy benefits	(29)		(6)

(2)Includes $386 million and $47 million of ceded losses related to the Michigan Catastrophic Claims Association for the three months ended March 31, 2021 and 2020, respectively.

Schedule of reinsurance recoverable for paid and unpaid claims

Reinsurance and indemnification recoverables


Reinsurance and indemnification recoverables, net
($ in millions)	March 31, 2021		December 31, 2020
Property and casualty
Paid and due from reinsurers and indemnitors	$	256	$	101
Unpaid losses estimated (including IBNR)	9,269		7,033
Total property and casualty	$	9,525	$	7,134

Allstate Health and Benefits	120		81
Total	$	9,645	$	7,215

Rollforward of credit loss allowance for reinsurance recoverables


Rollforward of credit loss allowance for reinsurance recoverables
($ in millions)	Three months ended March 31,
	2021		2020
Property and casualty (1) (2)
Beginning balance	$	(59)	$	(60)
(Increase) decrease in the provision for credit losses	(1)		1


Ending balance	$	(60)	$	(59)

Allstate Health and Benefits
Beginning balance	$	(1)	$	(1)

Increase in the provision for credit losses	—		—
Write-offs	—		—

Ending balance	$	(1)	$	(1)

(1)Primarily related to Run-off Property-Liability reinsurance ceded.

(2)Indemnification recoverables are considered collectible based on the industry pool and facility enabling legislation.

Company Restructuring (Tables)

3 Months Ended

Mar. 31, 2021

Restructuring and Related Activities [Abstract]

Schedule of changes in the restructuring liability


Restructuring activity during the period
($ in millions)	Employee costs		Exit costs		Total liability
Restructuring liability as of December 31, 2020	$	72	$	—	$	72
Expense incurred	2		53		55
Adjustments to liability	(4)		—		(4)
Payments and non-cash charges	(29)		(53)		(82)
Restructuring liability as of March 31, 2021	$	41	$	—	$	41

Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2021

Retirement Benefits [Abstract]

Company's pension and postretirement benefit plans


Components of net cost (benefit) for pension and other postretirement plans
	Three months ended March 31,
($ in millions)		2021		2020
Pension benefits
Service cost		$	26	$	28
Interest cost		46		56
Expected return on plan assets		(117)		(104)
Amortization of prior service credit		(13)		(14)

Costs and expenses		(58)		(34)
Remeasurement of projected benefit obligation		(512)		(116)
Remeasurement of plan assets		221		434
Remeasurement (gains) losses		(291)		318
Pension net (benefit) cost		$	(349)	$	284

Postretirement benefits
Service cost		$	—	$	1
Interest cost		2		3
Amortization of prior service credit		(6)		(1)

Costs and expenses		(4)		3
Remeasurement of projected benefit obligation		(19)		—
Remeasurement of plan assets		—		—
Remeasurement (gains) losses		(19)		—
Postretirement net (benefit) cost		$	(23)	$	3

Pension and postretirement benefits
Costs and expenses		$	(62)	$	(31)
Remeasurement (gains) losses		(310)		318
Total net (benefit) cost		$	(372)	$	287

Differences between expected and actual returns on plan assets and changes in assumptions affect the Company’s pension and other postretirement obligations, plan assets and expenses.


Pension and postretirement benefits remeasurement gains and losses
	Three months ended March 31,
($ in millions)		2021		2020
Remeasurement of projected benefit obligation (gains) losses:
Discount rate		$	(417)	$	(36)
Other assumptions		(114)		(80)
Remeasurement of plan assets (gains) losses		221		434
Remeasurement (gains) losses		$	(310)	$	318

Supplemental Cash Flow Information (Tables)

3 Months Ended

Mar. 31, 2021

Supplemental Cash Flow Information [Abstract]

Schedule of supplemental cash flow information from collateralized securities received


($ in millions)	Three months ended March 31,
	2021		2020

Net change in proceeds managed

Net change in short-term investments	$	(183)	$	370
Operating cash flow (used) provided	(183)		370
Net change in cash	1		—
Net change in proceeds managed	$	(182)	$	370

Cash flows from operating activities
Net change in liabilities
Liabilities for collateral, beginning of period	$	(914)	$	(1,298)
Liabilities for collateral, end of period	(1,096)		(928)
Operating cash flow provided (used)	$	182	$	(370)

Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2021

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

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


Components of other comprehensive income (loss) on a pre-tax and after-tax basis
($ in millions)	Three months ended March 31,
	2021						2020
	Pre-tax		Tax		After-tax		Pre-tax		Tax		After-tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$	(1,718)	$	364	$	(1,354)	$	(1,433)	$	303	$	(1,130)
Less: reclassification adjustment of realized capital gains and losses	185		(39)		146		287		(60)		227
Unrealized net capital gains and losses	(1,903)		403		(1,500)		(1,720)		363		(1,357)
Unrealized foreign currency translation adjustments	43		(9)		34		(49)		10		(39)


Unamortized pension and other postretirement prior service credit (1)	(19)		4		(15)		6		(2)		4
Other comprehensive (loss) income	$	(1,879)	$	398	$	(1,481)	$	(1,763)	$	371	$	(1,392)

(1) Represents prior service credits reclassified out of other comprehensive income and amortized into operating costs and expenses.

Earnings per Common Share - Computation earnings per common share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Numerator:
Net income from continuing operations	$ 2,406	$ 837
Less: Net loss attributable to noncontrolling interest	(6)	0
Net income from continuing operations attributable to Allstate	2,412	837
Less: Preferred stock dividends	27	36
Net income from continuing operations applicable to common shareholders	2,385	801
Loss from discontinued operations, net of tax	(3,793)	(288)
Net (loss) income applicable to common shareholders	$ (1,408)	$ 513
Denominator:
Weighted average common shares - Basic (in shares)	302.5	317.4
Effect of dilutive potential common shares:
Stock options (in shares)	2.5	3.3
Restricted stock units (non-participating) and performance stock awards (in shares)	1.4	1.7
Weighted average common and dilutive potential common shares outstanding (in shares)	306.4	322.4
Basic
Earnings per common share - Continuing operations basic (in dollars per share)	$ 7.88	$ 2.52
Earnings per common share - Discontinued operations basic (in dollars per share)	(12.53)	(0.90)
Earnings per common share - Basic (in dollars per share)	(4.65)	1.62
Diluted
Earnings per common share - Continuing operations diluted (in dollars per share)	7.78	2.48
Earnings per common share - Discontinued operations diluted (in dollars per share)	(12.38)	(0.89)
Earnings per common share - Diluted (in dollars per share)	$ (4.60)	$ 1.59
Anti-dilutive options excluded from diluted earnings per common share (in shares)	2.2	0.8

Acquisition and Disposition - Assets and liabilities recognized in acquisition (Details) - USD ($) $ in Millions	Mar. 31, 2021	Jan. 04, 2021	Dec. 31, 2020
Assets
Goodwill	$ 3,350		$ 2,369
National General Holdings Corp.
Assets
Investments		$ 4,957
Cash		402
Premiums and other receivables, net		1,545
Deferred acquisition costs (value of business acquired)		317
Reinsurance recoverables, net		1,219
Intangible assets		1,199
Other assets		734
Goodwill		980
Total assets		11,353
Liabilities
Reserve for property and casualty insurance claims and claims expense		2,774
Reserve for future policy benefits		189
Unearned premiums		2,245
Reinsurance payable		364
Debt		592
Deferred tax liabilities		177
Other liabilities		701
Total liabilities		$ 7,042

Acquisition and Disposition - Intangible asset by type (Details) - National General Holdings Corp. $ in Millions	Jan. 04, 2021 USD ($)
Business Acquisition [Line Items]
Intangible assets	$ 1,199
Distribution and customer relationships
Business Acquisition [Line Items]
Intangible assets	795
Trade names
Business Acquisition [Line Items]
Intangible assets	102
Licenses
Business Acquisition [Line Items]
Intangible assets	97
Technology and other
Business Acquisition [Line Items]
Intangible assets	$ 205

Acquisition and Disposition - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions					3 Months Ended			12 Months Ended
	Mar. 15, 2021	Feb. 03, 2021	Jan. 26, 2021	Jan. 04, 2021	Mar. 31, 2021	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2021	Mar. 29, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill					$ 3,350	$ 3,350				$ 2,369
Long-term debt					7,996	7,996				7,825
Amortization of intangible assets					53		$ 28
Redemption of preferred stock						$ 250
Proceeds from affiliates			$ 2,800
Definitive agreement with Wilton Reassurance									$ 220
Loss on disposition of operations					$ 3,998		$ 0
Noncumulative Preferred Stock \| Series A
Business Acquisition [Line Items]
Preferred stock, redemption price par value (in dollars per share)					$ 0.01	$ 0.01
Preferred stock, dividend rate, percentage						7.50%
Noncumulative Preferred Stock \| Series B
Business Acquisition [Line Items]
Preferred stock, redemption price par value (in dollars per share)					0.01	$ 0.01
Preferred stock, dividend rate, percentage						7.50%
Non-Cumulative Convertible Preferred Stock \| Series D
Business Acquisition [Line Items]
Preferred stock, redemption price par value (in dollars per share)					$ 0.01	$ 0.01
Discontinued Operations, Held-for-sale
Business Acquisition [Line Items]
Amortized cost, net					$ 23,511	$ 23,511				21,417
Equity securities, at fair value, cost					1,191	1,191				1,113
Other short term Investments, amortized cost					1,652	1,652				$ 993
Subordinated Debt
Business Acquisition [Line Items]
Repaid of subordinated notes	$ 72	$ 100
Subsequent acquisition (in percentage)		7.625%
Long-term debt					$ 417	$ 417
Senior Notes
Business Acquisition [Line Items]
Subsequent acquisition (in percentage)					6.75%	6.75%
National General Holdings Corp.
Business Acquisition [Line Items]
Goodwill				$ 980
Purchase accounting fair value adjustment					$ 67
Amortization of intangible assets					23
Amortization expense for the remainder of 2021					228	$ 228
Amortization expense of present value of future profits					134
Fair value purchase accounting adjustments, increase in reserves					74
Fair value purchase accounting adjustments, reduction in investments					13
Fair value purchase accounting adjustments, increase in current and deferred tax liabilities					98
Business acquisition, transaction costs					$ 22	22
National General Holdings Corp. \| Forecast
Business Acquisition [Line Items]
Amortization expense of present value of future profits								$ 183
National General Holdings Corp. \| Minimum
Business Acquisition [Line Items]
Finite-lived intangible asset, useful life (in years)				3 years	6 months
National General Holdings Corp. \| Maximum
Business Acquisition [Line Items]
Finite-lived intangible asset, useful life (in years)				10 years	12 months
National General Holdings Corp. \| Allstate Protection
Business Acquisition [Line Items]
Goodwill				$ 616
Present value of future profits					$ 317	$ 317
National General Holdings Corp. \| Protection Services
Business Acquisition [Line Items]
Goodwill				29
National General Holdings Corp. \| Allstate Health and Benefits
Business Acquisition [Line Items]
Goodwill				$ 335

Acquisition and Disposition - Amortization expense (Details) - National General Holdings Corp. $ in Millions	Jan. 04, 2021 USD ($)
Business Acquisition [Line Items]
2022	$ 218
2023	185
2024	135
2025	103
2026	70
Thereafter	140
Total amortization	$ 851

Acquisition and Disposition - Financial results from discontinued operations (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Costs and expenses
Income tax expense (benefit)	$ 370	$ 82
Loss from discontinued operations, net of tax	(3,793)	(288)
Loss from discontinued operations, net of tax	(3,793)	(288)
Discontinued Operations, Held-for-sale
Revenues
Life premiums and contract charges	340	335
Net investment income	439	175
Realized capital gains (losses)	79	(300)
Total revenues	858	210
Costs and expenses
Life contract benefits	410	360
Interest credited to contractholder funds	85	123
Amortization of DAC	36	36
Operating costs and expenses	55	61
Restructuring and related charges	19	1
Total costs and expenses	605	581
Amortization of deferred gain on reinsurance	2	1
Income (loss) from discontinued operations before income tax expense	255	(370)
Income tax expense (benefit)	50	(82)
Loss from discontinued operations, net of tax	205	(288)
Loss on disposition of operations	(4,418)	0
Income tax benefit	(420)	0
Loss on disposition, net of tax	(3,998)	0
Loss from discontinued operations, net of tax	$ 205	$ (288)

Acquisition and Disposition - Major classes of assets and liabilities to be transferred to buyer (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Investments
Assets held for sale	$ 36,829	$ 42,131
Liabilities
Liabilities held for sale	33,383	33,325
Discontinued Operations, Held-for-sale
Investments
Fixed income securities, at fair value (amortized cost, net $23,511 and $21,417)	25,073	23,789
Equity securities, at fair value (cost $1,191 and $1,113)	1,643	1,542
Mortgage loans, net	3,062	3,329
Limited partnership interests	1,942	3,046
Short-term, at fair value (amortized cost $1,652 and $993)	1,652	993
Other, net	936	1,998
Total investments	34,308	34,697
Cash	89	66
Deferred policy acquisitions costs	1,039	925
Reinsurance recoverables, net	1,982	2,005
Accrued investment income	248	229
Other assets	236	865
Separate accounts	3,339	3,344
Assets held for sale	41,241	42,131
Less: loss accrual	4,412	0
Assets held for sale	36,829	42,131
Liabilities
Reserve for future policy benefits	11,581	11,740
Contractholder funds	16,112	16,356
Deferred income taxes	857	973
Other liabilities and accrued expenses	1,494	912
Separate accounts	3,339	3,344
Liabilities held for sale	$ 33,383	$ 33,325

Acquisition and Disposition - Cash flows from discontinued operations (Details) - Discontinued Operations, Held-for-sale - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net cash provided by operating activities from discontinued operations	$ 64	$ 111
Net cash provided by investing activities from discontinued operations	$ 88	$ 85

Reportable Segments - Financial performance (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Segment Reporting Information
Adjusted net income	$ 731	$ (501)
Net investment income	708	246
Realized capital gains (losses)	426	(162)
Pension and other postretirement remeasurement (gains) losses	(310)	318
Business combination expenses and amortization of purchased intangibles	(56)	(27)
Income tax expense	(622)	(196)
Loss from discontinued operations	(4,163)	(370)
Income tax benefit from discontinued operations	(370)	(82)
Loss from discontinued operations, net of tax	(3,793)	(288)
Less: Net loss attributable to noncontrolling interest	(6)	0
Net (loss) income applicable to common shareholders	(1,408)	513
Allstate Protection
Segment Reporting Information
Underwriting income (loss)	1,660	1,351
Run-off Property-Liability
Segment Reporting Information
Underwriting income (loss)	(3)	(3)
Protection Services
Segment Reporting Information
Adjusted net income	49	37
Allstate Health and Benefits
Segment Reporting Information
Adjusted net income	65	24
Net investment income	19	20
Realized capital gains (losses)	2	(14)
Corporate and Other
Segment Reporting Information
Adjusted net income	(123)	(107)
Property-Liability
Segment Reporting Information
Net investment income	673	202
Realized capital gains (losses)	$ 404	$ (103)

Reportable Segments - Revenue information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Segment Reporting Information
Net investment income	$ 708	$ 246
Realized capital gains (losses)	426	(162)
Consolidated revenues	12,451	9,866
Property-Liability
Segment Reporting Information
Property and casualty insurance premiums	9,896	8,881
Net investment income	673	202
Realized capital gains (losses)	404	(103)
Consolidated revenues	11,358	9,193
Property-Liability \| Auto
Segment Reporting Information
Property and casualty insurance premiums	6,809	6,155
Property-Liability \| Homeowners
Segment Reporting Information
Property and casualty insurance premiums	2,392	2,037
Property-Liability \| Other personal lines
Segment Reporting Information
Property and casualty insurance premiums	505	471
Property-Liability \| Commercial lines
Segment Reporting Information
Property and casualty insurance premiums	190	218
Allstate Protection
Segment Reporting Information
Property and casualty insurance premiums	9,896	8,881
Run-off Property-Liability
Segment Reporting Information
Property and casualty insurance premiums	0	0
Protection Services
Segment Reporting Information
Intersegment premiums and service fees	41	38
Net investment income	10	10
Realized capital gains (losses)	10	(24)
Consolidated revenues	562	430
Protection Services \| Protection plans
Segment Reporting Information
Insurance premiums, commissions and fees	260	206
Protection Services \| Roadside assistance
Segment Reporting Information
Insurance premiums, commissions and fees	47	51
Protection Services \| Finance and insurance products
Segment Reporting Information
Insurance premiums, commissions and fees	104	97
Allstate Health and Benefits
Segment Reporting Information
Net investment income	19	20
Realized capital gains (losses)	2	(14)
Consolidated revenues	556	288
Allstate Health and Benefits \| Employer voluntary benefits
Segment Reporting Information
Insurance premiums, commissions and fees	263	282
Allstate Health and Benefits \| Group health
Segment Reporting Information
Insurance premiums, commissions and fees	83	0
Allstate Health and Benefits \| Individual accident and health
Segment Reporting Information
Insurance premiums, commissions and fees	109	0
Operating Segments \| Property-Liability
Segment Reporting Information
Insurance premiums, commissions and fees	385	213
Operating Segments \| Protection Services
Segment Reporting Information
Insurance premiums, commissions and fees	90	52
Operating Segments \| Allstate Health and Benefits
Segment Reporting Information
Insurance premiums, commissions and fees	80	0
Operating Segments \| Corporate and Other
Segment Reporting Information
Net investment income	6	14
Realized capital gains (losses)	10	(21)
Consolidated revenues	16	(7)
Intersegment Eliminations
Segment Reporting Information
Consolidated revenues	$ (41)	$ (38)

Investments - Portfolio composition (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Investments [Abstract]
Fixed income securities, at fair value	$ 40,594	$ 42,565
Equity securities, at fair value	3,154	3,168
Mortgage loans, net	902	746
Limited partnership interests	6,367	4,563
Short-term investments, at fair value	6,017	6,807
Other, net	3,042	1,691
Total	$ 60,076	$ 59,540

Investments - Amortized cost, gross unrealized gains and losses and fair value for fixed income securities (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Schedule of Available for Sale Securities
Amortized cost, net	$ 39,437	$ 40,034
Gross unrealized, Gains	1,409	2,563
Gross unrealized, Losses	(252)	(32)
Fixed income securities, at fair value	40,594	42,565
U.S. government and agencies
Schedule of Available for Sale Securities
Amortized cost, net	3,103	2,058
Gross unrealized, Gains	26	50
Gross unrealized, Losses	(19)	(1)
Fixed income securities, at fair value	3,110	2,107
Municipal
Schedule of Available for Sale Securities
Amortized cost, net	7,226	7,100
Gross unrealized, Gains	310	480
Gross unrealized, Losses	(36)	(2)
Fixed income securities, at fair value	7,500	7,578
Corporate
Schedule of Available for Sale Securities
Amortized cost, net	27,145	29,057
Gross unrealized, Gains	1,045	1,986
Gross unrealized, Losses	(187)	(26)
Fixed income securities, at fair value	28,003	31,017
Foreign government
Schedule of Available for Sale Securities
Amortized cost, net	977	921
Gross unrealized, Gains	16	37
Gross unrealized, Losses	(8)	0
Fixed income securities, at fair value	985	958
ABS
Schedule of Available for Sale Securities
Amortized cost, net	934	840
Gross unrealized, Gains	11	9
Gross unrealized, Losses	(2)	(3)
Fixed income securities, at fair value	943	846
MBS
Schedule of Available for Sale Securities
Amortized cost, net	52	58
Gross unrealized, Gains	1	1
Gross unrealized, Losses	0	0
Fixed income securities, at fair value	$ 53	$ 59

Investments - Scheduled maturities for fixed income securities (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Amortized cost, net
Due in one year or less	$ 1,279
Due after one year through five years	18,216
Due after five years through ten years	13,464
Due after ten years	5,492
Subtotal	38,451
ABS and MBS	986
Amortized cost, net	39,437	$ 40,034
Fair value
Due in one year or less	1,291
Due after one year through five years	18,810
Due after five years through ten years	13,818
Due after ten years	5,679
Subtotal	39,598
ABS and MBS	996
Total	$ 40,594	$ 42,565

Investments - Net investment income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net Investment Income:
Investment income, before expense	$ 745	$ 282
Investment expense	(37)	(36)
Net investment income	708	246
Fixed income securities
Net Investment Income:
Investment income, before expense	301	298
Equity securities
Net Investment Income:
Investment income, before expense	14	10
Mortgage loans
Net Investment Income:
Investment income, before expense	10	9
Limited partnership interests
Net Investment Income:
Investment income, before expense	378	(77)
Short-term investments
Net Investment Income:
Investment income, before expense	1	11
Other
Net Investment Income:
Investment income, before expense	$ 41	$ 31

Investments - Realized capital gains and losses by asset type (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Realized capital gains and losses by asset type
Realized capital gains (losses)	$ 426	$ (162)
Fixed income securities
Realized capital gains and losses by asset type
Realized capital gains (losses)	183	374
Equity securities
Realized capital gains and losses by asset type
Realized capital gains (losses)	164	(510)
Mortgage loans
Realized capital gains and losses by asset type
Realized capital gains (losses)	6	(10)
Limited partnership interests
Realized capital gains and losses by asset type
Realized capital gains (losses)	4	(86)
Derivatives
Realized capital gains and losses by asset type
Realized capital gains (losses)	11	78
Other
Realized capital gains and losses by asset type
Realized capital gains (losses)	$ 58	$ (8)

Investments - Realized capital gains and losses by transaction type (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Investments [Abstract]
Sales	$ 246	$ 388
Credit Losses	2	(37)
Valuation of equity investments	167	(591)
Valuation and settlements of derivative instruments	11	78
Realized capital gains (losses)	$ 426	$ (162)

Investments - Gross realized gains (losses) on sales of fixed income securities (Details) - Assets held for sale - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Schedule of Available for Sale Securities
Gross realized gains	$ 245	$ 435
Gross realized losses	$ (64)	$ (59)

Investments - Net appreciation (decline) recognized in net income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Debt and Equity Securities, FV-NI [Line Items]
Total	$ 266	$ (445)
Equity securities
Debt and Equity Securities, FV-NI [Line Items]
Total	125	(417)
Limited partnership interests carried at fair value
Debt and Equity Securities, FV-NI [Line Items]
Total	$ 141	$ (28)

Investments - OTTI losses by asset type (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Realized capital gains and losses by asset type
Fixed income securities	$ 2	$ (37)
Total credit losses by asset type	2	(36)
Commitments to fund commercial mortgage loans, bank loans and agent loans	0	(1)
Fixed income securities
Realized capital gains and losses by asset type
Fixed income securities	2	(2)
Corporate
Realized capital gains and losses by asset type
Fixed income securities	1	(1)
ABS
Realized capital gains and losses by asset type
Fixed income securities	1	0
MBS
Realized capital gains and losses by asset type
Fixed income securities	0	(1)
Mortgage loans
Realized capital gains and losses by asset type
Total credit losses by asset type	6	(9)
Limited partnership interests
Realized capital gains and losses by asset type
Total credit losses by asset type	0	(5)
Bank loans, net
Realized capital gains and losses by asset type
Total credit losses by asset type	$ (6)	$ (20)

Investments - Unrealized net capital gains and losses included in AOCI (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Fair value
Fixed income securities, at fair value	$ 40,594	$ 42,565
Short-term investments	6,017	6,807
Derivative instruments	0	0
Gross unrealized Gains
Fixed income securities	1,409	2,563
Short-term investments	0	0
Derivative instruments	0	0
Gross unrealized Losses
Fixed income securities	(252)	(32)
Short-term investments	0	0
Derivative instruments	(3)	(3)
Unrealized net gains (losses)
Fixed income securities	1,157	2,531
Short-term investments	0	0
Derivative instruments	(3)	(3)
EMA limited partnerships	(1)	(1)
Investments classified as held for sale	1,562	2,369
Unrealized net capital gains and losses, pre-tax	2,715	4,896
Amount recognized for:
Insurance reserves	(358)	(496)
DAC and DSI	(228)	(364)
Reclassification of noncontrolling interest	4
Amounts recognized	(582)	(860)
Deferred income taxes	(453)	(856)
Unrealized net capital gains and losses, after-tax	$ 1,680	$ 3,180

Investments - Change in unrealized net capital gains and losses (Details) $ in Millions	3 Months Ended
	Mar. 31, 2021 USD ($)
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	$ (2,181)
Amount recognized for:
Insurance reserves	138
DAC and DSI	136
Reclassification of noncontrolling interest	4
Amounts recognized	278
Deferred income taxes	403
Increase in unrealized net capital gains and losses, after-tax	(1,500)
EMA limited partnerships
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	0
Investments classified as held for sale
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	(807)
Fixed income securities
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	(1,374)
Short-term investments
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	0
Derivative instruments
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	$ 0

Investments - Carrying value for limited partnership interests (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Debt and Equity Securities, FV-NI [Line Items]
Limited partnership interests	$ 6,367	$ 4,563
EMA limited partnerships
Debt and Equity Securities, FV-NI [Line Items]
Limited partnership interests	5,004	3,501
Limited partnership interests
Debt and Equity Securities, FV-NI [Line Items]
Limited partnership interests	1,363	1,062
Private equity
Debt and Equity Securities, FV-NI [Line Items]
Limited partnership interests	5,230	3,655
Private equity \| EMA limited partnerships
Debt and Equity Securities, FV-NI [Line Items]
Limited partnership interests	3,935	2,667
Private equity \| Limited partnership interests
Debt and Equity Securities, FV-NI [Line Items]
Limited partnership interests	1,295	988
Real estate
Debt and Equity Securities, FV-NI [Line Items]
Limited partnership interests	884	697
Real estate \| EMA limited partnerships
Debt and Equity Securities, FV-NI [Line Items]
Limited partnership interests	816	623
Real estate \| Limited partnership interests
Debt and Equity Securities, FV-NI [Line Items]
Limited partnership interests	68	74
Other investments
Debt and Equity Securities, FV-NI [Line Items]
Limited partnership interests	253	211
Other investments \| EMA limited partnerships
Debt and Equity Securities, FV-NI [Line Items]
Limited partnership interests	253	211
Other investments \| Limited partnership interests
Debt and Equity Securities, FV-NI [Line Items]
Limited partnership interests	$ 0	$ 0

Investments - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Investments [Line Items]
Short-term investments	$ 6,017	$ 6,807
Accrued investment income	347	371
Agent loans, net
Investments [Line Items]
Accrued investment income	$ 2
High credit quality, percentage	85.00%
Allowance	$ (6)
Fixed income securities
Investments [Line Items]
Accrued investment income	322	351
Mortgage loans
Investments [Line Items]
Accrued investment income	4	2
Bank loans, net
Investments [Line Items]
Accrued investment income	$ 3	$ 3

Investments - Other investments by type (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Investments [Line Items]
Other investments	$ 3,042	$ 1,691
Bank loans, net
Investments [Line Items]
Other investments	1,260	772
Real estate
Investments [Line Items]
Other investments	871	659
Policy loans
Investments [Line Items]
Other investments	164	181
Agent loans, net
Investments [Line Items]
Other investments	607	0
Derivatives
Investments [Line Items]
Other investments	22	20
Other investments
Investments [Line Items]
Other investments	$ 118	$ 59

Investments - Rollforward of credit loss allowance for fixed income securities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Fixed income securities
Credit Losses on Fixed Income Securities
Beginning balance	$ (3)	$ 0
Credit losses on securities for which credit losses not previously reported	0	(4)
Net decreases related to credit losses previously reported	2	0
Reduction of allowance related to sales	0	0
Ending balance	(1)	(4)
Fixed income securities	1	4
Fixed income securities \| Discontinued Operations, Held-for-sale
Credit Losses on Fixed Income Securities
Ending balance	(1)	(2)
Fixed income securities	1	2
Corporate
Credit Losses on Fixed Income Securities
Ending balance		(1)
Fixed income securities		1
ABS
Credit Losses on Fixed Income Securities
Ending balance	(1)
Fixed income securities	$ 1
MBS
Credit Losses on Fixed Income Securities
Ending balance		(3)
Fixed income securities		$ 3

Investments - Gross unrealized losses and fair value by the type and length of time held in continuous unrealized loss position (Details) $ in Millions	Mar. 31, 2021 USD ($) contract	Dec. 31, 2020 USD ($) contract
U.S. government and agencies
Less than 12 months
Number of issues \| contract	108	26
Fair value	$ 2,084	$ 215
Unrealized losses	$ (19)	$ (1)
12 months or more
Number of issues \| contract	0	0
Fair value	$ 0	$ 0
Unrealized losses	0	0
Total unrealized losses
Total unrealized losses	$ (19)	$ (1)
Municipal
Less than 12 months
Number of issues \| contract	804	43
Fair value	$ 1,398	$ 116
Unrealized losses	$ (36)	$ (2)
12 months or more
Number of issues \| contract	1	0
Fair value	$ 5	$ 0
Unrealized losses	0	0
Total unrealized losses
Total unrealized losses	$ (36)	$ (2)
Corporate
Less than 12 months
Number of issues \| contract	1,003	107
Fair value	$ 6,715	$ 730
Unrealized losses	$ (176)	$ (21)
12 months or more
Number of issues \| contract	25	14
Fair value	$ 121	$ 46
Unrealized losses	(11)	(5)
Total unrealized losses
Total unrealized losses	$ (187)	$ (26)
Foreign government
Less than 12 months
Number of issues \| contract	64	7
Fair value	$ 289	$ 7
Unrealized losses	$ (8)	$ 0
12 months or more
Number of issues \| contract	0	0
Fair value	$ 0	$ 0
Unrealized losses	0	0
Total unrealized losses
Total unrealized losses	$ (8)	$ 0
ABS
Less than 12 months
Number of issues \| contract	15	21
Fair value	$ 79	$ 157
Unrealized losses	$ (2)	$ (2)
12 months or more
Number of issues \| contract	13	12
Fair value	$ 50	$ 43
Unrealized losses	0	(1)
Total unrealized losses
Total unrealized losses	$ (2)	$ (3)
MBS
Less than 12 months
Number of issues \| contract	15	11
Fair value	$ 2	$ 0
Unrealized losses	$ 0	$ 0
12 months or more
Number of issues \| contract	55	57
Fair value	$ 0	$ 0
Unrealized losses	0	0
Total unrealized losses
Total unrealized losses	$ 0	$ 0
Fixed income securities
Less than 12 months
Number of issues \| contract	2,009	215
Fair value	$ 10,567	$ 1,225
Unrealized losses	$ (241)	$ (26)
12 months or more
Number of issues \| contract	94	83
Fair value	$ 176	$ 89
Unrealized losses	(11)	(6)
Total unrealized losses
Total unrealized losses	$ (252)	$ (32)
Investment grade fixed income securities
Less than 12 months
Number of issues \| contract	1,821	146
Fair value	$ 9,206	$ 855
Unrealized losses	$ (207)	$ (8)
12 months or more
Number of issues \| contract	69	66
Fair value	$ 67	$ 45
Unrealized losses	(1)	0
Total unrealized losses
Total unrealized losses	$ (208)	$ (8)
Below investment grade fixed income securities
Less than 12 months
Number of issues \| contract	188	69
Fair value	$ 1,361	$ 370
Unrealized losses	$ (34)	$ (18)
12 months or more
Number of issues \| contract	25	17
Fair value	$ 109	$ 44
Unrealized losses	(10)	(6)
Total unrealized losses
Total unrealized losses	$ (44)	$ (24)

Investments - Gross unrealized losses by unrealized loss position and credit quality (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Investment grade fixed income securities
Investments [Line Items]
Fixed income securities with unrealized loss position less than 20% of amortized cost, net	$ (207,000,000)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost, net	(1,000,000)
Total unrealized losses	208,000,000	$ 8,000,000
Below investment grade fixed income securities
Investments [Line Items]
Fixed income securities with unrealized loss position less than 20% of amortized cost, net	(34,000,000)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost, net	(10,000,000)
Total unrealized losses	44,000,000	24,000,000
Unrealized losses having loss of less than twenty percent, less than 12 months	(30,000,000)
Unrealized losses related to securities with unrealized loss position greater than 20% of cost or amortized cost, unrealized loss position of 12 or more consecutive months	0
Fixed income securities
Investments [Line Items]
Fixed income securities with unrealized loss position less than 20% of amortized cost, net	(241,000,000)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost, net	(11,000,000)
Total unrealized losses	$ 252,000,000	$ 32,000,000

Investments - Mortgage loans amortized cost by debt service coverage ratio distribution and year of origination (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Debt and Equity Securities, FV-NI [Line Items]
Mortgage loans, net	$ 902	$ 746
Mortgage loans
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	916	754
Allowance	(14)	(8)
Mortgage loans, net	902	746
Mortgage loans \| 2016 and prior
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	283
Mortgage loans \| 2017
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	81
Mortgage loans \| 2018
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	156
Mortgage loans \| 2019
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	319
Mortgage loans \| 2020
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	77
Mortgage loans \| Current
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	0
Below 1.0 \| Mortgage loans
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	15	0
Below 1.0 \| Mortgage loans \| 2016 and prior
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	15
Below 1.0 \| Mortgage loans \| 2017
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	0
Below 1.0 \| Mortgage loans \| 2018
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	0
Below 1.0 \| Mortgage loans \| 2019
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	0
Below 1.0 \| Mortgage loans \| 2020
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	0
Below 1.0 \| Mortgage loans \| Current
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	0
1.0 - 1.25 \| Mortgage loans
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	75	46
1.0 - 1.25 \| Mortgage loans \| 2016 and prior
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	29
1.0 - 1.25 \| Mortgage loans \| 2017
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	0
1.0 - 1.25 \| Mortgage loans \| 2018
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	13
1.0 - 1.25 \| Mortgage loans \| 2019
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	23
1.0 - 1.25 \| Mortgage loans \| 2020
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	10
1.0 - 1.25 \| Mortgage loans \| Current
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	0
1.26 - 1.50 \| Mortgage loans
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	295	201
1.26 - 1.50 \| Mortgage loans \| 2016 and prior
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	105
1.26 - 1.50 \| Mortgage loans \| 2017
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	36
1.26 - 1.50 \| Mortgage loans \| 2018
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	24
1.26 - 1.50 \| Mortgage loans \| 2019
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	130
1.26 - 1.50 \| Mortgage loans \| 2020
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	0
1.26 - 1.50 \| Mortgage loans \| Current
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	0
Above 1.50 \| Mortgage loans
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	531	$ 507
Above 1.50 \| Mortgage loans \| 2016 and prior
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	134
Above 1.50 \| Mortgage loans \| 2017
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	45
Above 1.50 \| Mortgage loans \| 2018
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	119
Above 1.50 \| Mortgage loans \| 2019
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	166
Above 1.50 \| Mortgage loans \| 2020
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	67
Above 1.50 \| Mortgage loans \| Current
Debt and Equity Securities, FV-NI [Line Items]
Amortized cost before allowance	$ 0

Investments - Rollforward of credit loss allowance for mortgage loans (Details) - Mortgage loans - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Credit Losses on Fixed Income Securities
Beginning balance	$ (67)	$ (3)
Net increases related to credit losses	22	(40)
Write-offs	0	0
Ending balance	(45)	(85)
Discontinued Operations, Held-for-sale
Credit Losses on Fixed Income Securities
Ending balance	(31)	(68)
Cumulative effect of change in accounting principle
Credit Losses on Fixed Income Securities
Beginning balance	$ 0	$ (42)

Investments - Bank loans amortized cost by credit quality and year of origination (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Schedule of Available for Sale Securities
Mortgage loans, net	$ 902	$ 746
Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	1,309	823
Allowance	(49)	(51)
Mortgage loans, net	1,260	772
BBB \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	60	38
BB \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	311	168
B \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	772	456
CCC and below \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	166	$ 161
2016 and prior \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	33
2016 and prior \| BBB \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	0
2016 and prior \| BB \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	9
2016 and prior \| B \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	13
2016 and prior \| CCC and below \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	11
2017 \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	123
2017 \| BBB \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	5
2017 \| BB \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	22
2017 \| B \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	68
2017 \| CCC and below \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	28
2018 \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	155
2018 \| BBB \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	7
2018 \| BB \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	30
2018 \| B \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	86
2018 \| CCC and below \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	32
2019 \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	185
2019 \| BBB \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	11
2019 \| BB \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	42
2019 \| B \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	77
2019 \| CCC and below \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	55
2020 \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	210
2020 \| BBB \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	8
2020 \| BB \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	36
2020 \| B \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	139
2020 \| CCC and below \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	27
Current \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	603
Current \| BBB \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	29
Current \| BB \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	172
Current \| B \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	389
Current \| CCC and below \| Bank loans, net
Schedule of Available for Sale Securities
Amortized cost before allowance	$ 13

Investments - Rollforward of credit loss allowance for bank loans (Details) - USD ($)
$ in Millions

3 Months Ended

Mar. 31, 2021

Mar. 31, 2020

Credit Losses on Fixed Income Securities

Investments


Note 5			Investments


Portfolio composition

($ in millions)	March 31, 2021		December 31, 2020
Fixed income securities, at fair value	$	40,594	$	42,565
Equity securities, at fair value	3,154		3,168
Mortgage loans, net	902		746
Limited partnership interests	6,367		4,563
Short-term investments, at fair value	6,017		6,807
Other, net	3,042		1,691
Total	$	60,076	$	59,540


Amortized cost, gross unrealized gains (losses) and fair value for fixed income securities
($ in millions)	Amortized cost, net		Gross unrealized				Fair value
			Gains		Losses
March 31, 2021
U.S. government and agencies	$	3,103	$	26	$	(19)	$	3,110
Municipal	7,226		310		(36)		7,500
Corporate	27,145		1,045		(187)		28,003
Foreign government	977		16		(8)		985
ABS	934		11		(2)		943
MBS	52		1		—		53
Total fixed income securities	$	39,437	$	1,409	$	(252)	$	40,594



December 31, 2020
U.S. government and agencies	$	2,058	$	50	$	(1)	$	2,107
Municipal	7,100		480		(2)		7,578
Corporate	29,057		1,986		(26)		31,017
Foreign government	921		37		—		958
ABS	840		9		(3)		846
MBS	58		1		—		59
Total fixed income securities	$	40,034	$	2,563	$	(32)	$	42,565


Scheduled maturities for fixed income securities
($ in millions)	March 31, 2021
	Amortized cost, net		Fair value
Due in one year or less	$	1,279	$	1,291
Due after one year through five years	18,216		18,810
Due after five years through ten years	13,464		13,818
Due after ten years	5,492		5,679
	38,451		39,598
ABS and MBS	986		996
Total	$	39,437	$	40,594


Net investment income
($ in millions)	Three months ended March 31,
		2021		2020
Fixed income securities		$	301	$	298
Equity securities		14		10
Mortgage loans		10		9
Limited partnership interests		378		(77)
Short-term investments		1		11
Other		41		31
Investment income, before expense		745		282
Investment expense		(37)		(36)
Net investment income		$	708	$	246


Realized capital gains (losses) by asset type
($ in millions)	Three months ended March 31,
		2021		2020
Fixed income securities		$	183	$	374
Equity securities		164		(510)
Mortgage loans		6		(10)
Limited partnership interests		4		(86)
Derivatives		11		78
Other		58		(8)
Realized capital gains (losses)		$	426	$	(162)


Realized capital gains (losses) by transaction type
($ in millions)	Three months ended March 31,
		2021		2020
Sales		$	246	$	388
Credit losses		2		(37)

Valuation of equity investments (1)		167		(591)
Valuation and settlements of derivative instruments		11		78
Realized capital gains (losses)		$	426	$	(162)

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


Gross realized gains (losses) on sales of fixed income securities
($ in millions)	Three months ended March 31,
		2021		2020
Gross realized gains		$	245	$	435
Gross realized losses		(64)		(59)


Net appreciation (decline) recognized in net income
($ in millions)	Three months ended March 31,
		2021		2020
Equity securities		$	125	$	(417)

Limited partnership interests carried at fair value		141		(28)
Total		$	266	$	(445)


Credit losses recognized in net income
($ in millions)	Three months ended March 31,
		2021		2020
Assets
Fixed income securities:

Corporate		$	1	$	(1)
ABS		1		—
MBS		—		(1)
Total fixed income securities		2		(2)
Mortgage loans		6		(9)
Limited partnership interests		—		(5)
Other investments
Bank loans		(6)		(20)

Total credit losses by asset type		$	2	$	(36)

Liabilities
Commitments to fund commercial mortgage loans, bank loans and agent loans		—		(1)
Total		$	2	$	(37)


Unrealized net capital gains and losses included in AOCI
($ in millions)	Fair value		Gross unrealized				Unrealized net gains (losses)
March 31, 2021			Gains		Losses
Fixed income securities	$	40,594	$	1,409	$	(252)	$	1,157

Short-term investments	6,017		—		—		—
Derivative instruments	—		—		(3)		(3)
Equity method of accounting (“EMA”) limited partnerships (1)							(1)
Investments classified as held for sale							1,562
Unrealized net capital gains and losses, pre-tax							2,715
Amounts recognized for:
Insurance reserves (2)							(358)
DAC and DSI (3)							(228)
Reclassification of noncontrolling interest							4
Amounts recognized							(582)
Deferred income taxes							(453)
Unrealized net capital gains and losses, after-tax							$	1,680

December 31, 2020
Fixed income securities	$	42,565	$	2,563	$	(32)	$	2,531
Short-term investments	6,807		—		—		—
Derivative instruments	—		—		(3)		(3)
EMA limited partnerships							(1)
Investments classified as held for sale							2,369
Unrealized net capital gains and losses, pre-tax							4,896
Amounts recognized for:
Insurance reserves							(496)
DAC and DSI							(364)
Amounts recognized							(860)
Deferred income taxes							(856)
Unrealized net capital gains and losses, after-tax							$	3,180


Change in unrealized net capital gains (losses)
($ in millions)	Three months ended March 31, 2021
Fixed income securities	$	(1,374)
Short-term investments	—
Derivative instruments	—
EMA limited partnerships	—
Investments classified as held for sale	(807)
Total	(2,181)
Amounts recognized for:
Insurance reserves	138
DAC and DSI	136
Reclassification of noncontrolling interest	4
Amounts recognized	278
Deferred income taxes	403
Decrease in unrealized net capital gains and losses, after-tax	$	(1,500)


Carrying value for limited partnership interests
($ in millions)	March 31, 2021						December 31, 2020
	EMA		Fair Value		Total		EMA		Fair Value		Total
Private equity	$	3,935	$	1,295	$	5,230	$	2,667	$	988	$	3,655
Real estate	816		68		884		623		74		697
Other (1)	253		—		253		211		—		211
Total (2)	$	5,004	$	1,363	$	6,367	$	3,501	$	1,062	$	4,563

(1)Other consists of certain limited partnership interests where the underlying assets are predominately public equity and debt securities.


Other investments by asset type
($ in millions)	March 31, 2021		December 31, 2020
Bank loans, net	$	1,260	$	772
Real estate	871		659
Policy loans	164		181
Agent loans, net	607		—
Derivatives	22		20
Other	118		59
Total (1)	$	3,042	$	1,691

Portfolio monitoring and credit losses

Fixed income securities The Company has a comprehensive portfolio monitoring process to identify and evaluate each fixed income security that may require a credit loss allowance.

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.


Rollforward of credit loss allowance for fixed income securities
	Three months ended March 31,
($ in millions)		2021		2020
Beginning balance		$	(3)	$	—
Credit losses on securities for which credit losses not previously reported		—		(4)
Net decreases related to credit losses previously reported		2		—
Reduction of allowance related to sales		—		—



Ending balance (1) (2)		$	(1)	$	(4)

(2)Includes $1 million and $2 million of credit loss allowance for fixed income securities that are classified as held for sale as of March 31, 2021 and 2020, respectively.


Gross unrealized losses and fair value by type and length of time held 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
March 31, 2021
Fixed income securities
U.S. government and agencies	108	$	2,084	$	(19)	—	$	—	$	—	$	(19)
Municipal	804	1,398		(36)		1	5		—		(36)
Corporate	1,003	6,715		(176)		25	121		(11)		(187)
Foreign government	64	289		(8)		—	—		—		(8)
ABS	15	79		(2)		13	50		—		(2)
MBS	15	2		—		55	—		—		—

Total fixed income securities	2,009	$	10,567	$	(241)	94	$	176	$	(11)	$	(252)
Investment grade fixed income securities	1,821	$	9,206	$	(207)	69	$	67	$	(1)	$	(208)
Below investment grade fixed income securities	188	1,361		(34)		25	109		(10)		(44)
Total fixed income securities	2,009	$	10,567	$	(241)	94	$	176	$	(11)	$	(252)

December 31, 2020
Fixed income securities
U.S. government and agencies	26	$	215	$	(1)	—	$	—	$	—	$	(1)
Municipal	43	116		(2)		—	—		—		(2)
Corporate	107	730		(21)		14	46		(5)		(26)
Foreign government	7	7		—		—	—		—		—
ABS	21	157		(2)		12	43		(1)		(3)
MBS	11	—		—		57	—		—		—
Total fixed income securities	215	$	1,225	$	(26)	83	$	89	$	(6)	$	(32)
Investment grade fixed income securities	146	$	855	$	(8)	66	$	45	$	—	$	(8)
Below investment grade fixed income securities	69	370		(18)		17	44		(6)		(24)
Total fixed income securities	215	$	1,225	$	(26)	83	$	89	$	(6)	$	(32)


Gross unrealized losses by unrealized loss position and credit quality as of March 31, 2021
($ in millions)	Investment grade		Below investment grade		Total
Fixed income securities with unrealized loss position less than 20% of amortized cost, net (1) (2)	$	(207)	$	(34)	$	(241)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost, net (3) (4)	(1)		(10)		(11)
Total unrealized losses	$	(208)	$	(44)	$	(252)

(1)Below investment grade fixed income securities include $30 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, net, the degree of which suggests that these securities do not pose a high risk of having credit losses.

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


Mortgage loans amortized cost by debt service coverage ratio distribution and year of origination
($ in millions)	March 31, 2021														December 31, 2020
	2016 and prior		2017		2018		2019		2020		Current		Total		Total
Below 1.0	$	15	$	—	$	—	$	—	$	—	$	—	$	15	$	—
1.0 - 1.25	29		—		13		23		10		—		75		46
1.26 - 1.50	105		36		24		130		—		—		295		201
Above 1.50	134		45		119		166		67		—		531		507
Amortized cost before allowance	$	283	$	81	$	156	$	319	$	77	$	—	$	916	$	754
Allowance													(14)		(8)
Amortized cost, net													$	902	$	746


Rollforward of credit loss allowance for mortgage loans
	Three months ended March 31,
($ in millions)		2021		2020
Beginning balance		$	(67)	$	(3)
Cumulative effect of change in accounting principle		—		(42)
Net decreases (increases) related to credit losses		22		(40)
Write-offs		—		—

Ending balance (1)		$	(45)	$	(85)

(1)Includes $31 million and $68 million of credit loss allowance for mortgage loans that are classified as held for sale as of March 31, 2021 and 2020, respectively.


Bank loans amortized cost by credit rating and year of origination
($ in millions)	March 31, 2021														December 31, 2020
	2016 and prior		2017		2018		2019		2020		Current		Total		Total
BBB	$	—	$	5	$	7	$	11	$	8	$	29	$	60	$	38
BB	9		22		30		42		36		172		311		168
B	13		68		86		77		139		389		772		456
CCC and below	11		28		32		55		27		13		166		161




Amortized cost before allowance	$	33	$	123	$	155	$	185	$	210	$	603	$	1,309	$	823
Allowance													(49)		(51)
Amortized cost, net													$	1,260	$	772


Rollforward of credit loss allowance for bank loans
($ in millions)	Three months ended March 31,
		2021		2020
Beginning balance		$	(67)	$	—
Cumulative effect of change in accounting principle		—		(53)
Net increases related to credit losses		(2)		(27)
Reduction of allowance related to sales		9		1
Write-offs		—		—

Ending balance (1)		$	(60)	$	(79)

(1)Includes $11 million and $22 million of credit loss allowance for bank loans that are classified as held for sale as of March 31, 2021 and 2020, respectively.

Bank loans, net

Credit Losses on Fixed Income Securities

Beginning balance

$ (67)

$ 0

Net increases related to credit losses

(2)

(27)

Reduction of allowance related to sales

Write-offs

Ending balance

(60)

(79)

Bank loans, net | Discontinued Operations, Held-for-sale

Credit Losses on Fixed Income Securities

Ending balance

(11)

(22)

Cumulative effect of change in accounting principle | Bank loans, net

Credit Losses on Fixed Income Securities

Beginning balance

$ 0

$ (53)

Fair Value of Assets and Liabilities - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Fair value of assets and liabilities measured on recurring and non-recurring basis
Fixed income securities, at fair value	$ 40,594	$ 42,565
Significant unobservable inputs (Level 3)
Fair value of assets and liabilities measured on recurring and non-recurring basis
Assets at fair value	851	832
Recurring basis \| Significant unobservable inputs (Level 3)
Fair value of assets and liabilities measured on recurring and non-recurring basis
Fixed income securities, at fair value	268	226
Assets at fair value	851	832
Fixed Income Securities Valued Based on Nonbinding Broker Quotes
Fair value of assets and liabilities measured on recurring and non-recurring basis
Assets at fair value	62	69
Municipal Not Rated by Third Party Credit Rating Agencies
Fair value of assets and liabilities measured on recurring and non-recurring basis
Assets at fair value	15	$ 18
Limited partnership interests
Fair value of assets and liabilities measured on recurring and non-recurring basis
Commitments to invest in limited partnership interests	$ 274
Limited partnership interests \| Minimum
Fair value of assets and liabilities measured on recurring and non-recurring basis
Investment assets, useful life (in years)	10 years
Limited partnership interests \| Maximum
Fair value of assets and liabilities measured on recurring and non-recurring basis
Investment assets, useful life (in years)	12 years

Fair Value of Assets and Liabilities - Assets and liabilities measured at fair value on a recurring and non-recurring basis (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Assets
Fixed income securities, at fair value	$ 40,594	$ 42,565
Equity securities, at fair value	3,154	3,168
Short-term investments, at fair value	6,017	6,807
Other investments	3,042	1,691
Assets held for sale	36,829	42,131
Assets held for sale	(7)	(6)
Counterparty and cash collateral netting	$ (24)	$ (15)
Assets as a percent of assets measured at fair value	0.00%	0.00%
Total	$ 83,578	$ 84,237
Liabilities
Liabilities held for sale	(33,383)	(33,325)
Counterparty and cash collateral netting	17	27
Liabilities held for sale counterparty and cash collateral netting	$ 4	$ 9
Liabilities as a percent of liabilities measured at fair value	(3.00%)	(4.20%)
U.S. government and agencies
Assets
Fixed income securities, at fair value	$ 3,110	$ 2,107
Municipal
Assets
Fixed income securities, at fair value	7,500	7,578
Foreign government
Assets
Fixed income securities, at fair value	985	958
ABS
Assets
Fixed income securities, at fair value	943	846
MBS
Assets
Fixed income securities, at fair value	53	59
Quoted prices in active markets for identical assets (Level 1)
Assets
Total assets at fair value	$ 15,303	$ 17,567
Assets as a percent of assets measured at fair value	18.70%	21.30%
Liabilities
Total recurring basis liabilities	$ (1)	$ 0
Liabilities as a percent of liabilities measured at fair value	0.20%	0.00%
Significant other observable inputs (Level 2)
Assets
Total assets at fair value	$ 65,523	$ 64,029
Assets as a percent of assets measured at fair value	80.30%	77.70%
Liabilities
Total recurring basis liabilities	$ (118)	$ (153)
Liabilities as a percent of liabilities measured at fair value	20.90%	23.80%
Significant unobservable inputs (Level 3)
Assets
Total assets at fair value	$ 851	$ 832
Assets as a percent of assets measured at fair value	1.00%	1.00%
Liabilities
Total recurring basis liabilities	$ (463)	$ (516)
Liabilities as a percent of liabilities measured at fair value	81.90%	80.40%
Fair Value Net Asset Value
Assets
Assets held for sale	$ 562	$ 762
Investments reported at NAV	1,363	1,062
Recurring basis
Assets
Other investments	(17)	(9)
Liabilities
Other liabilities	13	18
Counterparty and cash collateral netting	17	27
Recurring basis \| Quoted prices in active markets for identical assets (Level 1)
Assets
Fixed income securities, at fair value	3,074	2,061
Equity securities, at fair value	2,318	2,468
Short-term investments, at fair value	3,530	6,549
Other investments	0	0
Other assets	1	1
Assets held for sale	6,380	6,488
Total assets at fair value	15,303	17,567
Liabilities
Other liabilities	(1)	0
Liabilities held for sale	0	0
Total recurring basis liabilities	(1)	0
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| U.S. government and agencies
Assets
Fixed income securities, at fair value	3,074	2,061
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| Municipal
Assets
Fixed income securities, at fair value	0	0
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| Corporate - public
Assets
Fixed income securities, at fair value	0	0
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| Corporate - privately placed
Assets
Fixed income securities, at fair value	0	0
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| Foreign government
Assets
Fixed income securities, at fair value	0	0
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| ABS
Assets
Fixed income securities, at fair value	0	0
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| MBS
Assets
Fixed income securities, at fair value	0	0
Recurring basis \| Significant other observable inputs (Level 2)
Assets
Fixed income securities, at fair value	37,252	40,278
Equity securities, at fair value	426	396
Short-term investments, at fair value	2,487	223
Other investments	39	29
Other assets	0	0
Assets held for sale	25,319	23,103
Total assets at fair value	65,523	64,029
Liabilities
Other liabilities	(21)	(34)
Liabilities held for sale	(97)	(119)
Total recurring basis liabilities	(118)	(153)
Recurring basis \| Significant other observable inputs (Level 2) \| U.S. government and agencies
Assets
Fixed income securities, at fair value	36	45
Recurring basis \| Significant other observable inputs (Level 2) \| Municipal
Assets
Fixed income securities, at fair value	7,482	7,562
Recurring basis \| Significant other observable inputs (Level 2) \| Corporate - public
Assets
Fixed income securities, at fair value	18,818	21,885
Recurring basis \| Significant other observable inputs (Level 2) \| Corporate - privately placed
Assets
Fixed income securities, at fair value	9,037	9,002
Recurring basis \| Significant other observable inputs (Level 2) \| Foreign government
Assets
Fixed income securities, at fair value	985	958
Recurring basis \| Significant other observable inputs (Level 2) \| ABS
Assets
Fixed income securities, at fair value	864	794
Recurring basis \| Significant other observable inputs (Level 2) \| MBS
Assets
Fixed income securities, at fair value	30	32
Recurring basis \| Significant unobservable inputs (Level 3)
Assets
Fixed income securities, at fair value	268	226
Equity securities, at fair value	410	304
Short-term investments, at fair value	0	35
Other investments	3	0
Other assets	0	0
Assets held for sale	170	267
Total assets at fair value	851	832
Liabilities
Other liabilities	0	0
Liabilities held for sale	(463)	(516)
Total recurring basis liabilities	(463)	(516)
Recurring basis \| Significant unobservable inputs (Level 3) \| U.S. government and agencies
Assets
Fixed income securities, at fair value	0	0
Recurring basis \| Significant unobservable inputs (Level 3) \| Municipal
Assets
Fixed income securities, at fair value	18	17
Recurring basis \| Significant unobservable inputs (Level 3) \| Corporate - public
Assets
Fixed income securities, at fair value	43	67
Recurring basis \| Significant unobservable inputs (Level 3) \| Corporate - privately placed
Assets
Fixed income securities, at fair value	105	63
Recurring basis \| Significant unobservable inputs (Level 3) \| Foreign government
Assets
Fixed income securities, at fair value		0
Fair value
Assets
Total assets at fair value	$ 81,653	$ 82,413
Assets as a percent of assets measured at fair value	100.00%	100.00%
Liabilities
Total recurring basis liabilities	$ (565)	$ (642)
Liabilities as a percent of liabilities measured at fair value	100.00%	100.00%
Fair value \| Significant unobservable inputs (Level 3)
Assets
Assets held for sale	$ 3,484	$ 4,440
Liabilities
Liabilities held for sale	(8,950)	(9,424)
Fair value \| Recurring basis
Assets
Fixed income securities, at fair value	40,594	42,565
Equity securities, at fair value	3,154	3,168
Short-term investments, at fair value	6,017	6,807
Other investments	25	20
Other assets	1	1
Assets held for sale	31,862	29,852
Total assets at fair value	81,653	82,413
Liabilities
Other liabilities	(9)	(16)
Liabilities held for sale	(556)	(626)
Total recurring basis liabilities	(565)	(642)
Fair value \| Recurring basis \| U.S. government and agencies
Assets
Fixed income securities, at fair value	3,110	2,106
Fair value \| Recurring basis \| Municipal
Assets
Fixed income securities, at fair value	7,500	7,579
Fair value \| Recurring basis \| Corporate - public
Assets
Fixed income securities, at fair value	18,861	21,952
Fair value \| Recurring basis \| Corporate - privately placed
Assets
Fixed income securities, at fair value	9,142	9,065
Fair value \| Recurring basis \| Foreign government
Assets
Fixed income securities, at fair value	985	958
Fair value \| Recurring basis \| ABS
Assets
Fixed income securities, at fair value	943	846
Fair value \| Recurring basis \| MBS
Assets
Fixed income securities, at fair value	53	59
Fair value \| Recurring basis \| Significant unobservable inputs (Level 3) \| Foreign government
Assets
Fixed income securities, at fair value	0
Fair value \| Recurring basis \| Significant unobservable inputs (Level 3) \| ABS
Assets
Fixed income securities, at fair value	79	52
Fair value \| Recurring basis \| Significant unobservable inputs (Level 3) \| MBS
Assets
Fixed income securities, at fair value	$ 23	$ 27

Fair Value of Assets and Liabilities - Quantitative information about the significant unobservable inputs used in level 3 fair value measurements (Details) - Equity-indexed and forward starting options in life and annuity product contracts - Significant unobservable inputs (Level 3) $ in Millions	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Quantitative information about the significant unobservable inputs
Fair value	$ (435)	$ (483)
Projected option cost \| Minimum
Quantitative information about the significant unobservable inputs
Weighted average	0.010	0.010
Projected option cost \| Maximum
Quantitative information about the significant unobservable inputs
Weighted average	0.042	0.042
Projected option cost \| Weighted Average
Quantitative information about the significant unobservable inputs
Weighted average	0.0283	0.0280

Fair Value of Assets and Liabilities - Rollforward of level 3 assets and liabilities held at fair value on a recurring basis during the period (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Assets
Balance at beginning of period	$ 832	$ 738
Total gains (losses) included in: net income	18	(29)
Total gains (losses) included in: OCI	(4)	(2)
Transfers into Level 3	13	26
Transfers out of Level 3	(47)	(74)
Transfers to (from) held for sale	0
Purchases	125	60
Sales	(47)	(11)
Issues	0	0
Settlements	(39)	(31)
Balance at end of period	851	677
Liabilities
Balance at the beginning of the period	(516)	(462)
Total gains (losses) included in: net income	55	48
Total gains (losses) included in: OCI	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Transfers to (from) held for sale	0
Purchases	0	0
Sales	0	0
Issues	(8)	(8)
Settlements	6	5
Balance at the end of the period	(463)	(417)
Net investment income
Total Level 3 gains (losses) included in net income
Gain (loss) included in earnings	(1)	(14)
Realized capital gains (losses)
Total Level 3 gains (losses) included in net income
Gain (loss) included in earnings	18	(3)
Liabilities held for sale
Liabilities
Balance at the beginning of the period	(516)	(462)
Total gains (losses) included in: net income	55	48
Total gains (losses) included in: OCI	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Transfers to (from) held for sale	0
Purchases	0	0
Sales	0	0
Issues	(8)	(8)
Settlements	6	5
Balance at the end of the period	(463)	(417)
Municipal
Assets
Balance at beginning of period	17	22
Total gains (losses) included in: net income	0	0
Total gains (losses) included in: OCI	0	(1)
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Transfers to (from) held for sale	0
Purchases	3	0
Sales	0	(1)
Issues	0	0
Settlements	(2)	(1)
Balance at end of period	18	19
Corporate - public
Assets
Balance at beginning of period	67	36
Total gains (losses) included in: net income	1	0
Total gains (losses) included in: OCI	(3)	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Transfers to (from) held for sale	(6)
Purchases	17	0
Sales	(33)	0
Issues	0	0
Settlements	0	0
Balance at end of period	43	36
Corporate - privately placed
Assets
Balance at beginning of period	63	32
Total gains (losses) included in: net income	0	0
Total gains (losses) included in: OCI	(1)	0
Transfers into Level 3	10	0
Transfers out of Level 3	(7)	0
Transfers to (from) held for sale	13
Purchases	27	1
Sales	0	0
Issues	0	0
Settlements	0	0
Balance at end of period	105	33
ABS
Assets
Balance at beginning of period	52	49
Total gains (losses) included in: net income	0	0
Total gains (losses) included in: OCI	0	0
Transfers into Level 3	0	26
Transfers out of Level 3	(32)	(49)
Transfers to (from) held for sale	0
Purchases	59	33
Sales	0	0
Issues	0	0
Settlements	0	(27)
Balance at end of period	79	32
MBS
Assets
Balance at beginning of period	27	35
Total gains (losses) included in: net income	0	0
Total gains (losses) included in: OCI	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Transfers to (from) held for sale	0
Purchases	0	0
Sales	(4)	0
Issues	0	0
Settlements	0	0
Balance at end of period	23	35
Fixed income securities
Assets
Balance at beginning of period	226	174
Total gains (losses) included in: net income	1	0
Total gains (losses) included in: OCI	(4)	(1)
Transfers into Level 3	10	26
Transfers out of Level 3	(39)	(49)
Transfers to (from) held for sale	7
Purchases	106	34
Sales	(37)	(1)
Issues	0	0
Settlements	(2)	(28)
Balance at end of period	268	155
Equity securities
Assets
Balance at beginning of period	304	255
Total gains (losses) included in: net income	16	(17)
Total gains (losses) included in: OCI	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Transfers to (from) held for sale	92
Purchases	5	1
Sales	(7)	0
Issues	0	0
Settlements	0	0
Balance at end of period	410	239
Short-term investments
Assets
Balance at beginning of period	35	25
Total gains (losses) included in: net income	0	0
Total gains (losses) included in: OCI	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Transfers to (from) held for sale	0
Purchases	0	25
Sales	0	0
Issues	0	0
Settlements	(35)	0
Balance at end of period	0	50
Other investments
Assets
Balance at beginning of period	0
Total gains (losses) included in: net income	0
Total gains (losses) included in: OCI	0
Transfers into Level 3	0
Transfers out of Level 3	0
Transfers to (from) held for sale	0
Purchases	3
Sales	0
Issues	0
Settlements	0
Balance at end of period	3
Assets held for sale
Assets
Balance at beginning of period	267	284
Total gains (losses) included in: net income	1	(12)
Total gains (losses) included in: OCI	0	(1)
Transfers into Level 3	3	0
Transfers out of Level 3	(8)	(25)
Transfers to (from) held for sale	(99)
Purchases	11	0
Sales	(3)	(10)
Issues	0	0
Settlements	(2)	(3)
Balance at end of period	$ 170	$ 233

Fair Value of Assets and Liabilities - Change in unrealized gains and losses included in net income for level 3 assets and liabilities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Gains (losses) included in net income for Level 3 assets and liabilities:
Fair value assets measured on recurring basis, change in unrealized gain (loss) included in earnings	$ 18	$ (29)
Gains (losses) for Level 3 liabilities still held at the balance sheet date, included in earnings	55	48
Gains (losses) for Level 3 assets and liabilities still held at the balance sheet date, included in earnings	73	19
Changes in unrealized net capital gains and losses reported in OCI	(4)	(2)
Net investment income
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date	(1)	(14)
Realized capital gains (losses)
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date	18	(3)
Liabilities held for sale
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 liabilities still held at the balance sheet date, included in earnings	55	48
Municipal
Gains (losses) included in net income for Level 3 assets and liabilities:
Changes in unrealized net capital gains and losses reported in OCI	0	(1)
Corporate - public
Gains (losses) included in net income for Level 3 assets and liabilities:
Fair value assets measured on recurring basis, change in unrealized gain (loss) included in earnings	1	0
Changes in unrealized net capital gains and losses reported in OCI	(3)	0
Corporate - privately placed
Gains (losses) included in net income for Level 3 assets and liabilities:
Fair value assets measured on recurring basis, change in unrealized gain (loss) included in earnings	0	0
Changes in unrealized net capital gains and losses reported in OCI	(1)	0
Fixed income securities
Gains (losses) included in net income for Level 3 assets and liabilities:
Fair value assets measured on recurring basis, change in unrealized gain (loss) included in earnings	1	0
Equity securities
Gains (losses) included in net income for Level 3 assets and liabilities:
Fair value assets measured on recurring basis, change in unrealized gain (loss) included in earnings	16	(17)
Assets held for sale
Gains (losses) included in net income for Level 3 assets and liabilities:
Fair value assets measured on recurring basis, change in unrealized gain (loss) included in earnings	1	(12)
Changes in unrealized net capital gains and losses reported in OCI	$ 0	$ (1)

Fair Value of Assets and Liabilities - Carrying values and fair value estimates of financial instruments not carried at fair value (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Financial assets
Mortgage loans, net	$ 902	$ 746
Assets held for sale	36,829	42,131
Financial liabilities
Long-term debt	7,996	7,825
Liability for collateral	1,096	914	$ 928	$ 1,298
Liabilities held for sale	33,383	33,325
Significant unobservable inputs (Level 3) \| Amortized cost, net
Financial assets
Mortgage loans, net	902	746
Bank loans	1,260	772
Agent loans	607	0
Assets held for sale	3,278	4,206
Financial liabilities
Contractholder funds on investment contracts	33	0
Liabilities held for sale	8,099	8,130
Significant unobservable inputs (Level 3) \| Fair value
Financial assets
Mortgage loans, net	948	792
Bank loans	1,286	803
Agent loans	606	0
Assets held for sale	3,484	4,440
Financial liabilities
Contractholder funds on investment contracts	35	0
Liabilities held for sale	8,950	9,424
Significant other observable inputs (Level 2) \| Amortized cost, net
Financial liabilities
Long-term debt	7,577	7,825
Liability for collateral	1,096	914
Significant other observable inputs (Level 2) \| Fair value
Financial liabilities
Long-term debt	9,046	9,489
Liability for collateral	$ 1,096	$ 914

Derivative Financial Instruments - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Potential recoveries	$ 0
Cash and securities pledged as collateral by counterparties	10,000,000
Securities pledged as collateral to counterparties	6,000,000
Collateral posted under MNAs for contracts containing credit-risk-contingent features	(4,000,000)	$ (13,000,000)
Cash and securities pledged in the form of margin deposits	54,000,000
Margin deposit liabilities	$ 12,000,000

Derivative Financial Instruments - Summary of the volume and fair value positions of derivative instruments (Details) $ in Millions	Mar. 31, 2021 USD ($) contract	Dec. 31, 2020 USD ($) contract
Derivatives, Fair Value
Total asset derivatives, notional amount	$ 1,818	$ 2,009
Total liability derivatives, notional amount	2,988	3,182
Total derivatives, notional amount	$ 4,806	$ 5,191
Total asset derivatives, number of contracts \| contract	4,300	4,440
Total liability derivatives, number of contracts \| contract	6,445	4,108
Total derivatives, Number of contracts \| contract	10,745	8,548
Net amount on balance sheet	$ 176	$ 206
Net amount on balance sheet	(556)	(655)
Total derivatives, fair value, net	(380)	(449)
Asset derivatives gross amount	178	218
Liability derivatives, gross asset	24	2
Asset derivatives, gross liability	(2)	(12)
Liability derivatives gross amount	(580)	(657)
Liabilities held for sale
Derivatives, Fair Value
Total liability derivatives, notional amount	$ 2,340	$ 2,240
Total liability derivatives, number of contracts \| contract	2,670	2,737
Net amount on balance sheet	$ (553)	$ (630)
Liability derivatives, gross asset	7	1
Liability derivatives gross amount	(560)	(631)
Assets held for sale
Derivatives, Fair Value
Total asset derivatives, notional amount	$ 15	$ 158
Total asset derivatives, number of contracts \| contract	2,485	3,189
Net amount on balance sheet	$ 155	$ 185
Asset derivatives gross amount	155	189
Asset derivatives, gross liability	$ 0	$ (4)
Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, number of contracts \| contract	3,560
Net amount on balance sheet	$ (1)
Liability derivatives, gross asset	0
Liability derivatives gross amount	$ (1)
Futures \| Other assets \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, number of contracts \| contract	614	290
Net amount on balance sheet	$ 0	$ 0
Asset derivatives gross amount	0	0
Asset derivatives, gross liability	$ 0	$ 0
Futures \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, number of contracts \| contract		705
Net amount on balance sheet		$ 0
Liability derivatives, gross asset		0
Liability derivatives gross amount		$ 0
Options \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, number of contracts \| contract	59	56
Net amount on balance sheet	$ 4	$ 6
Asset derivatives gross amount	4	6
Asset derivatives, gross liability	$ 0	$ 0
Futures \| Other assets \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, number of contracts \| contract	1,142	905
Net amount on balance sheet	$ 1	$ 1
Asset derivatives gross amount	1	1
Asset derivatives, gross liability	$ 0	$ 0
Futures \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, number of contracts \| contract	215	666
Net amount on balance sheet	$ 0	$ 0
Liability derivatives, gross asset	0	0
Liability derivatives gross amount	0	0
Total return swap agreements – fixed income \| Other investments
Derivatives, Fair Value
Total asset derivatives, notional amount		100
Net amount on balance sheet		0
Asset derivatives gross amount		0
Asset derivatives, gross liability		0
Total return swap agreements – fixed income \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, notional amount		50
Net amount on balance sheet		0
Liability derivatives, gross asset		0
Liability derivatives gross amount		0
Foreign currency forwards \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, notional amount	20	291
Net amount on balance sheet	0	4
Asset derivatives gross amount	0	9
Asset derivatives, gross liability	0	(5)
Foreign currency forwards \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, notional amount	543	250
Net amount on balance sheet	5	(9)
Liability derivatives, gross asset	17	1
Liability derivatives gross amount	(12)	(10)
Other embedded derivative financial instruments \| Other investments
Derivatives, Fair Value
Total asset derivatives, notional amount		750
Net amount on balance sheet		0
Asset derivatives gross amount		0
Asset derivatives, gross liability		0
Credit default swaps – buying protection \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, notional amount	33	60
Net amount on balance sheet	(2)	(3)
Asset derivatives gross amount	0	0
Asset derivatives, gross liability	(2)	(3)
Credit default swaps – buying protection \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, notional amount	100	638
Net amount on balance sheet	(7)	(16)
Liability derivatives, gross asset	0	0
Liability derivatives gross amount	(7)	(16)
Credit default swaps – selling protection \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, notional amount	900	750
Net amount on balance sheet	18	13
Asset derivatives gross amount	18	13
Asset derivatives, gross liability	0	0
Credit default swaps – selling protection \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, notional amount	5	4
Net amount on balance sheet	0	0
Liability derivatives, gross asset	0	0
Liability derivatives gross amount	$ 0	$ 0

Derivative Financial Instruments - Gross and net amounts for OTC derivatives (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Asset derivatives
Asset derivatives gross amount	$ 178	$ 218
Asset derivatives, gross liability	(2)	(12)
Derivative assets net amount on balance sheet	176	206
Liability derivatives
Liability derivatives gross amount	(580)	(657)
Liability derivatives, gross asset	24	2
Net amount on balance sheet	(556)	(655)
OTC derivatives
Asset derivatives
Asset derivatives gross amount	17	10
Asset derivatives, gross liability	(19)	(9)
Derivative, collateral, right to reclaim cash	2	0
Derivative assets net amount on balance sheet	0	1
Derivative assets received under securities collateral	0	0
Derivative asset, fair value, amount offset against collateral	0	1
Liability derivatives
Liability derivatives gross amount	(15)	(19)
Liability derivatives, gross asset	19	9
Derivative liability offsets under cash collateral pledged	(6)	9
Net amount on balance sheet	(2)	(1)
Derivative liabilities received under securities collateral	0	0
Derivative liability, fair value, amount offset against collateral	$ (2)	$ (1)

Derivative Financial Instruments - OTC derivatives counterparty credit exposure by counterparty credit rating (Details) $ in Millions	Mar. 31, 2021 USD ($) counter-party	Dec. 31, 2020 USD ($) counter-party
Credit Derivatives
Number of counter- parties \| counter-party	2	1
Notional amount	$ 338	$ 186
Credit exposure	10	4
Exposure, net of collateral	$ 0	$ 0
A+
Credit Derivatives
Number of counter- parties \| counter-party	1	1
Notional amount	$ 189	$ 186
Credit exposure	8	4
Exposure, net of collateral	$ 0	$ 0
A
Credit Derivatives
Number of counter- parties \| counter-party	1	0
Notional amount	$ 149	$ 0
Credit exposure	2	0
Exposure, net of collateral	$ 0	$ 0

Derivative Financial Instruments - Fair value of instruments with credit-risk-contingent features (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gross liability fair value of contracts containing credit-risk-contingent features	$ 13	$ 19
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(7)	(6)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	(4)	(13)
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$ 2	$ 0

Derivative Financial Instruments - CDS notional amount by credit rating and fair value of protection sold (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Term of credit default swaps (in years)	5 years
Derivative [Line Items]
Notional amount	$ 4,806	$ 5,191
Credit default contracts
Derivative [Line Items]
Notional amount	905	754
Fair value	18	13
Single name \| Corporate \| Credit default contracts
Derivative [Line Items]
Notional amount	5	4
Fair value	0	0
Index \| Corporate \| Credit default contracts
Derivative [Line Items]
Notional amount	900	750
Fair value	18	13
AAA \| Credit default contracts
Derivative [Line Items]
Notional amount	7	6
AAA \| Single name \| Corporate \| Credit default contracts
Derivative [Line Items]
Notional amount	0	0
AAA \| Index \| Corporate \| Credit default contracts
Derivative [Line Items]
Notional amount	7	6
AA \| Credit default contracts
Derivative [Line Items]
Notional amount	14	12
AA \| Single name \| Corporate \| Credit default contracts
Derivative [Line Items]
Notional amount	0	0
AA \| Index \| Corporate \| Credit default contracts
Derivative [Line Items]
Notional amount	14	12
A \| Credit default contracts
Derivative [Line Items]
Notional amount	179	156
A \| Single name \| Corporate \| Credit default contracts
Derivative [Line Items]
Notional amount	0	0
A \| Index \| Corporate \| Credit default contracts
Derivative [Line Items]
Notional amount	179	156
BBB \| Credit default contracts
Derivative [Line Items]
Notional amount	610	492
BBB \| Single name \| Corporate \| Credit default contracts
Derivative [Line Items]
Notional amount	0	0
BBB \| Index \| Corporate \| Credit default contracts
Derivative [Line Items]
Notional amount	610	492
BB and lower \| Credit default contracts
Derivative [Line Items]
Notional amount	95	88
BB and lower \| Single name \| Corporate \| Credit default contracts
Derivative [Line Items]
Notional amount	5	4
BB and lower \| Index \| Corporate \| Credit default contracts
Derivative [Line Items]
Notional amount	$ 90	$ 84

Variable Interest Entities - (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Variable Interest Entity [Line Items]
Fixed income securities, at fair value, amortized cost (in dollars)	$ 39,437	$ 40,034
Short-term, at fair value, amortized cost (in dollars)	6,017	$ 6,807
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Fixed income securities, at fair value, amortized cost (in dollars)	286
Short-term, at fair value, amortized cost (in dollars)	61
Variable Interest Entity, Primary Beneficiary \| Allstate Protection
Variable Interest Entity [Line Items]
Property and casualty insurance premiums	$ 45

Variable Interest Entities - Assets and liabilities of consolidated VIEs (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Investments
Fixed income securities, at fair value	$ 40,594	$ 42,565
Short-term investments, at fair value	6,017	6,807
Total	60,076	59,540
Cash	709	311
Premium installment receivables, net	7,921	6,463
Reinsurance and indemnification recoverables, net	9,645	7,215
Other assets, net	5,803	2,756
Total assets	129,811	125,987
Liabilities
Reserve for property and casualty insurance claims and claims expense	31,414	27,610
Unearned premiums	18,177	15,946
Total liabilities	103,019	$ 95,770
Variable Interest Entity, Primary Beneficiary
Investments
Fixed income securities, at fair value	281
Short-term investments, at fair value	61
Total	342
Cash	8
Premium installment receivables, net	43
Reinsurance and indemnification recoverables, net	112
Other assets, net	109
Total assets	614
Liabilities
Reserve for property and casualty insurance claims and claims expense	223
Unearned premiums	189
Other liabilities and expenses	229
Total liabilities	$ 641

Reserve for Property and Casualty Insurance Claims and Claims Expense - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Increase (decrease) in claims and claims expense
Prior years	$ 241	$ (8)
Catastrophe
Increase (decrease) in claims and claims expense
Incurred expense (adjustment)	(590)	(211)
Prior years	243	$ 20
Southern California Edison \| Fire
Increase (decrease) in claims and claims expense
Prior years	$ (110)

Reserve for Property and Casualty Insurance Claims and Claims Expense - Rollforward of the reserve for property and casualty insurance claims and claims expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Incurred claims and claims expense related to:
Prior years	$ (241)	$ 8
National General
Activity in the reserve for property-liability insurance claims and claims expense:
National General acquisition as of January 4, 2021	1,797	0
Property-Liability
Activity in the reserve for property-liability insurance claims and claims expense:
Balance as of January 1	27,610	27,712
Less recoverables	(7,033)	(6,912)
Net balance as of January 1	20,577	20,800
Incurred claims and claims expense related to:
Current year	6,284	5,333
Prior years	(241)	8
Total incurred	6,043	5,341
Claims and claims expense paid related to:
Current year	(2,541)	(2,352)
Prior years	(3,731)	(3,554)
Total paid	(6,272)	(5,906)
Net balance as of March 31	22,145	20,235
Plus recoverables	9,269	6,913
Balance as of March 31	$ 31,414	$ 27,148

Reserve for Property and Casualty Insurance Claims and Claims Expense - Prior year reserve reestimates included in claims and claims expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Increase (decrease) in claims and claims expense
Prior years	$ (241)	$ 8
Auto
Increase (decrease) in claims and claims expense
Prior years	(36)	13
Homeowners
Increase (decrease) in claims and claims expense
Prior years	(203)	(7)
Other personal lines
Increase (decrease) in claims and claims expense
Prior years	(18)	(6)
Commercial lines
Increase (decrease) in claims and claims expense
Prior years	15	6
Run-off Property-Liability
Increase (decrease) in claims and claims expense
Prior years	1	2
Non-catastrophe losses
Increase (decrease) in claims and claims expense
Prior years	2	28
Non-catastrophe losses \| Auto
Increase (decrease) in claims and claims expense
Prior years	(17)	22
Non-catastrophe losses \| Homeowners
Increase (decrease) in claims and claims expense
Prior years	5	1
Non-catastrophe losses \| Other personal lines
Increase (decrease) in claims and claims expense
Prior years	0	(2)
Non-catastrophe losses \| Commercial lines
Increase (decrease) in claims and claims expense
Prior years	13	5
Non-catastrophe losses \| Run-off Property-Liability
Increase (decrease) in claims and claims expense
Prior years	1	2
Catastrophe
Increase (decrease) in claims and claims expense
Prior years	(243)	(20)
Catastrophe \| Nationwide Aggregate Reinsurance Program
Increase (decrease) in claims and claims expense
Prior years	150
Catastrophe \| Auto
Increase (decrease) in claims and claims expense
Prior years	(19)	(9)
Catastrophe \| Homeowners
Increase (decrease) in claims and claims expense
Prior years	(208)	(8)
Catastrophe \| Other personal lines
Increase (decrease) in claims and claims expense
Prior years	(18)	(4)
Catastrophe \| Commercial lines
Increase (decrease) in claims and claims expense
Prior years	2	1
Catastrophe \| Run-off Property-Liability
Increase (decrease) in claims and claims expense
Prior years	0	$ 0
Fire \| Southern California Edison
Increase (decrease) in claims and claims expense
Prior years	$ 110

Reinsurance and indemnification - Premiums earned and life premiums and contract charges (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Property and casualty insurance premiums
Reinsurance
Property and casualty insurance premiums earned	$ (508)	$ (289)
Life premiums
Reinsurance
Accident and health insurance premiums and contract charges	$ (24)	$ (3)

Reinsurance and indemnification - Claims expense, life contract benefits and interest credited to contractholder funds (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Reductions to costs and expenses due to reinsurance ceded amounts
Unearned premiums	$ 18,177		$ 15,946
Property and casualty insurance claims and claims expense
Reductions to costs and expenses due to reinsurance ceded amounts
Ceded losses incurred	(1,593)	$ (131)
Accident and health insurance policy benefits
Reductions to costs and expenses due to reinsurance ceded amounts
Ceded losses incurred	(29)	(6)
Michigan Catastrophic Claim Association \| Property and casualty insurance claims and claims expense
Reductions to costs and expenses due to reinsurance ceded amounts
Ceded losses incurred	386	$ 47
Nationwide Reinsurance Program
Reductions to costs and expenses due to reinsurance ceded amounts
Unearned premiums	75
Nationwide Reinsurance Program \| Property and casualty insurance claims and claims expense
Reductions to costs and expenses due to reinsurance ceded amounts
Ceded losses incurred	$ 955

Reinsurance and indemnification - Reinsurance and indemnification recoverables, net (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Reinsurance
Reinsurance and indemnification recoverables, net	$ 9,645	$ 7,215
Property-Liability
Reinsurance
Paid and due from reinsurers and indemnitors	256	101
Unpaid losses estimated (including IBNR)	9,269	7,033
Reinsurance and indemnification recoverables, net	9,525	7,134
Allstate Health and Benefits
Reinsurance
Reinsurance and indemnification recoverables, net	$ 120	$ 81

Reinsurance and indemnification - Rollforward of credit loss allowance for reinsurance recoverables (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Property-Liability
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward]
Reinsurance Recoverable, Allowance for Credit Loss, Beginning Balance	$ (59)	$ (60)
Increase (decrease) in the provision for credit losses	(1)	1
Reinsurance Recoverable, Allowance for Credit Loss, Ending Balance	(60)	(59)
Allstate Health and Benefits
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward]
Reinsurance Recoverable, Allowance for Credit Loss, Beginning Balance	(1)	(1)
Increase (decrease) in the provision for credit losses	0	0
Write-offs	0	0
Reinsurance Recoverable, Allowance for Credit Loss, Ending Balance	$ (1)	$ (1)

Capital Structure (Details) - Senior Notes $ in Millions	Mar. 29, 2021 USD ($)
Debt outstanding:
Repayments of debt	$ 250
London Interbank Offered Rate (LIBOR)
Debt outstanding:
Bear interest at floating rate	0.43%

Company Restructuring - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Restructuring Cost and Reserve [Line Items]
Restructuring and related charges	$ 51	$ 4
Employee costs
Restructuring Cost and Reserve [Line Items]
Cumulative amount incurred to date for active programs	220
Exit costs
Restructuring Cost and Reserve [Line Items]
Cumulative amount incurred to date for active programs	105
Transformative Growth Plan
Restructuring Cost and Reserve [Line Items]
Restructuring and related charges	17		$ 238
Restructuring and related charges approximately	290
Future Work Environment
Restructuring Cost and Reserve [Line Items]
Restructuring and related charges	33
Restructuring and related charges approximately	$ 110

Company Restructuring - Changes in the restructuring liability (Details) $ in Millions	3 Months Ended
	Mar. 31, 2021 USD ($)
Restructuring Reserve
Restructuring liability as of December 31, 2020	$ 72
Expense incurred	55
Adjustments to liability	(4)
Payments and non-cash charges	(82)
Restructuring liability as of March 31, 2021	41
Employee costs
Restructuring Reserve
Restructuring liability as of December 31, 2020	72
Expense incurred	2
Adjustments to liability	(4)
Payments and non-cash charges	(29)
Restructuring liability as of March 31, 2021	41
Exit costs
Restructuring Reserve
Restructuring liability as of December 31, 2020	0
Expense incurred	53
Adjustments to liability	0
Payments and non-cash charges	(53)
Restructuring liability as of March 31, 2021	$ 0

Guarantees and Contingent Liabilities (Details)	3 Months Ended
Guarantees and Contingent Liabilities (Details)	Mar. 31, 2021 USD ($)
Minimum
Proceedings:
Loss contingencies, reasonably possible pretax loss exposure in excess of the amount accrued	$ 0
Maximum
Proceedings:
Loss contingencies, reasonably possible pretax loss exposure in excess of the amount accrued	$ 85,000,000

Benefit Plans - Components of net cost (benefit) for pension and other postretirement plans (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Components of net periodic cost
Costs and expenses	$ (62)	$ (31)
Remeasurement (gains) losses	(310)	318
Pension net (benefit) cost	(372)	287
Pension benefits
Components of net periodic cost
Service cost	26	28
Interest cost	46	56
Expected return on plan assets	(117)	(104)
Amortization of prior service credit	(13)	(14)
Costs and expenses	(58)	(34)
Remeasurement of projected benefit obligation	(512)	(116)
Remeasurement of plan assets	221	434
Remeasurement (gains) losses	(291)	318
Pension net (benefit) cost	(349)	284
Postretirement benefits
Components of net periodic cost
Service cost	0	1
Interest cost	2	3
Amortization of prior service credit	(6)	(1)
Costs and expenses	(4)	3
Remeasurement of projected benefit obligation	(19)	0
Remeasurement of plan assets	0	0
Remeasurement (gains) losses	(19)	0
Pension net (benefit) cost	$ (23)	$ 3

Benefit Plans - Pension and postretirement benefits remeasurement gains and losses (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Retirement Benefits [Abstract]
Discount rate	$ (417)	$ (36)
Other assumptions	(114)	(80)
Remeasurement of plan assets (gains) losses	221	434
Pension and other postretirement remeasurement (gains) losses	$ (310)	$ 318

Benefit Plans - Narrative (Details)	Mar. 31, 2021	Dec. 31, 2020
Pension benefits
Components of net periodic cost
Discount rate	3.13%	2.51%

Supplemental Cash Flow Information - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Supplemental Cash Flow Information [Abstract]
Transfer from investments	$ 14	$ 20
Non-cash financing activities related to the issuance of shares for vested restricted stock units	50	51
Operating lease, payments	46	39
ROU asset obtained in exchange for operating lease liability	$ 103	$ 31

Supplemental Cash Flow Information - Activities resulting from management of proceeds (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Net change in proceeds managed
Net change in short-term investments	$ (183)	$ 370
Operating cash flow (used) provided	(183)	370
Net change in cash	1	0
Net change in proceeds managed	(182)	370
Change in Liabilities for Collateral [Roll Forward]
Liabilities for collateral, beginning of period	(914)	(1,298)
Liabilities for collateral, end of period	(1,096)	(928)
Operating cash flow provided (used)	$ 182	$ (370)

Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Pre-tax
Other comprehensive income (loss)	$ (1,879)	$ (1,763)
Tax
Other comprehensive income (loss)	398	371
After-tax
Other comprehensive income (loss)	(1,481)	(1,392)
Unrealized net capital gains and losses
Pre-tax
Unrealized net holding gains and losses arising during the period, net of related offsets	(1,718)	(1,433)
Less: reclassification adjustment of realized capital gains and losses	185	287
Other comprehensive income (loss)	(1,903)	(1,720)
Tax
Unrealized net holding gains and losses arising during the period, net of related offsets	364	303
Less: reclassification adjustment of realized capital gains and losses	(39)	(60)
Other comprehensive income (loss)	403	363
After-tax
Unrealized net holding gains and losses arising during the period, net of related offsets	(1,354)	(1,130)
Less: reclassification adjustment of realized capital gains and losses	146	227
Other comprehensive income (loss)	(1,500)	(1,357)
Unrealized foreign currency translation adjustments
Pre-tax
Other comprehensive income (loss)	43	(49)
Tax
Other comprehensive income (loss)	(9)	10
After-tax
Other comprehensive income (loss)	34	(39)
Unamortized pension and other postretirement prior service credit
Pre-tax
Other comprehensive income (loss)	(19)	6
Tax
Other comprehensive income (loss)	4	(2)
After-tax
Other comprehensive income (loss)	$ (15)	$ 4

Derivative Financial Instruments - Gains and losses from valuation and settlements reported on derivatives not designated as accounting hedges (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	$ 27	$ 33
Realized capital gains (losses)
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	11	78
Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	16	(45)
Interest rate contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(1)	35
Interest rate contracts \| Realized capital gains (losses)
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(1)	35
Interest rate contracts \| Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0
Equity and index contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	14	(12)
Equity and index contracts \| Realized capital gains (losses)
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(2)	33
Equity and index contracts \| Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	16	(45)
Foreign currency contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	10	25
Foreign currency contracts \| Realized capital gains (losses)
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	10	25
Foreign currency contracts \| Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0
Credit default contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	4	(10)
Credit default contracts \| Realized capital gains (losses)
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	4	(10)
Credit default contracts \| Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	$ 0	0
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		(9)
Total return swaps - fixed income \| Realized capital gains (losses)
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		(9)
Total return swaps - fixed income \| Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		0
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		4
Total return swaps - equity index \| Realized capital gains (losses)
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		4
Total return swaps - equity index \| Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		$ 0