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Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
Schedule of Goodwill by reporting unit
The Company’s goodwill reporting units are equivalent to its reportable segments, Allstate Protection, Service Businesses, Allstate Life and Allstate Benefits to which goodwill has been assigned.
Goodwill by reporting unit
 
 
 As of December 31,
($ in millions)
 
2018
 
2017
Allstate Protection
 
$
810

 
$
810

Service Businesses
 
1,449

 
1,100

Allstate Life
 
175

 
175

Allstate Benefits
 
96

 
96

Total
 
$
2,530

 
$
2,181
Schedule of indefinite-lived intangible assets
Intangible assets by type
 
 
 As of December 31,
($ in millions)
 
2018
 
2017
Customers relationships
 
$
530

 
$
396

Trade names and licenses
 
143

 
143

Technology and other
 
40

 
17

Total
 
$
713

 
$
556
Schedule of finite-lived intangible assets
Intangible assets by type
 
 
 As of December 31,
($ in millions)
 
2018
 
2017
Customers relationships
 
$
530

 
$
396

Trade names and licenses
 
143

 
143

Technology and other
 
40

 
17

Total
 
$
713

 
$
556
Computation of basic and diluted earnings per common share
Computation of basic and diluted earnings per common share
 
 
For the years ended December 31,
($ in millions, except per share data)
 
2018
 
2017
 
2016
Numerator:
 
 
 
 
 
 
Net income
 
$
2,160

 
$
3,554

 
$
1,808

Less: Preferred stock dividends
 
148

 
116

 
116

Net income applicable to common shareholders (1)
 
$
2,012

 
$
3,438

 
$
1,692

 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
Weighted average common shares outstanding
 
347.8

 
362.0

 
372.8

Effect of dilutive potential common shares:
 
 
 
 
 
 
Stock options
 
3.6

 
4.3

 
3.2

Restricted stock units (non-participating) and performance stock awards
 
1.8

 
1.5

 
1.3

Weighted average common and dilutive potential common shares outstanding
 
353.2

 
367.8

 
377.3

 
 
 
 
 
 
 
Earnings per common share – Basic
 
$
5.78

 
$
9.50

 
$
4.54

Earnings per common share – Diluted
 
$
5.70

 
$
9.35

 
$
4.48


(1) 
Net income applicable to common shareholders is net income less preferred stock dividends.
Schedule of changes in accounting principles
The impacts of the adjustments on the financial statements and reportable segments are summarized in the following tables.
Consolidated Statements of Operations
 
 
Previously reported
 
Impact of change
 
As adjusted
($ in millions, except per share data)
 
Year Ended December 31, 2018
Property and casualty insurance claims and claims expense
 
$
22,839

 
$
(61
)
 
$
22,778

Operating costs and expenses
 
5,869

 
(275
)
 
5,594

Pension and other postretirement remeasurement gains and losses
 
—

 
468

 
468

Restructuring and related charges
 
83

 
(16
)
 
67

Total costs and expenses
 
37,077

 
116

 
37,193

Income from operations before income tax expense
 
2,744

 
(116
)
 
2,628

Income tax expense
 
492

 
(24
)
 
468

Net income
 
2,252

 
(92
)
 
2,160

Net income applicable to common shareholders
 
$
2,104

 
$
(92
)
 
$
2,012

 
 
 
 
 
 
 
Earnings per common share:
 
 
 
 
 
 
Net income applicable to common shareholders per common share - Basic
 
$
6.05

 
$
(0.27
)
 
$
5.78

Net income applicable to common shareholders per common share - Diluted
 
$
5.96

 
$
(0.26
)
 
$
5.70


Consolidated Statements of Operations
 
 
Previously reported
 
Impact of change
 
As adjusted
($ in millions, except per share data)
 
Year Ended December 31, 2017
Property and casualty insurance claims and claims expense
 
$
21,929

 
$
(82
)
 
$
21,847

Operating costs and expenses
 
5,442

 
(246
)
 
5,196

Pension and other postretirement remeasurement gains and losses
 
—

 
(217
)
 
(217
)
Restructuring and related charges
 
109

 
(13
)
 
96

Total costs and expenses
 
35,436

 
(558
)
 
34,878

Income from operations before income tax expense
 
3,991

 
558

 
4,549

Income tax expense
 
802

 
193

 
995

Net income
 
3,189

 
365

 
3,554

Net income applicable to common shareholders
 
$
3,073

 
$
365

 
$
3,438

 
 
 
 
 
 
 
Earnings per common share:
 
 
 
 
 
 
Net income applicable to common shareholders per common share - Basic
 
$
8.49

 
$
1.01

 
$
9.50

Net income applicable to common shareholders per common share - Diluted
 
$
8.36

 
$
0.99

 
$
9.35

 
 
 
 
 
 
 
 
 
Year Ended December 31, 2016
Property and casualty insurance claims and claims expense
 
$
22,221

 
$
(61
)
 
$
22,160

Operating costs and expenses
 
4,939

 
(93
)
 
4,846

Pension and other postretirement remeasurement gains and losses
 
—

 
270

 
270

Restructuring and related charges
 
30

 
(12
)
 
18

Total costs and expenses
 
34,650

 
104

 
34,754

Income from operations before income tax expense
 
2,754

 
(104
)
 
2,650

Income tax expense
 
877

 
(35
)
 
842

Net income
 
1,877

 
(69
)
 
1,808

Net income applicable to common shareholders
 
$
1,761

 
$
(69
)
 
$
1,692

 
 
 
 
 
 
 
Earnings per common share:
 
 
 
 
 
 
Net income applicable to common shareholders per common share - Basic
 
$
4.72

 
$
(0.18
)
 
$
4.54

Net income applicable to common shareholders per common share - Diluted
 
$
4.67

 
$
(0.19
)
 
$
4.48

Consolidated Statements of Comprehensive Income
 
 
 
 
Previously reported
 
Impact of change
 
As adjusted
($ in millions)
 
Year Ended December 31, 2018
Net income
 
$
2,252

 
$
(92
)
 
$
2,160

Other comprehensive loss, after-tax
 
 
 
 
 
 
Changes in:
 
 
 
 
 
 
Unrealized net capital gains and losses
 
(754
)
 
—

 
(754
)
Unrealized foreign currency translation adjustments
 
(55
)
 
7

 
(48
)
Unrecognized pension and other postretirement benefit cost (1)
 
(144
)
 
85

 
(59
)
Other comprehensive loss, after-tax
 
(953
)
 
92

 
(861
)
Comprehensive income
 
$
1,299

 
$
—

 
$
1,299

 
 
 
 
 
 
 
 
 
Year Ended December 31, 2017
Net income
 
$
3,189

 
$
365

 
$
3,554

Other comprehensive income, after-tax
 
 
 
 
 
 
Changes in:
 
 
 
 
 
 
Unrealized net capital gains and losses
 
319

 
—

 
319

Unrealized foreign currency translation adjustments
 
47

 
(2
)
 
45

Unrecognized pension and other postretirement benefit cost (1)
 
307

 
(359
)
 
(52
)
Other comprehensive income, after-tax
 
673

 
(361
)
 
312

Comprehensive income
 
$
3,862

 
$
4

 
$
3,866

 
 
 
 
 
 
 
 
 
Year Ended December 31, 2016
Net income
 
$
1,877

 
$
(69
)
 
$
1,808

Other comprehensive income, after-tax
 
 
 
 
 
 
Changes in:
 
 
 
 
 
 
Unrealized net capital gains and losses
 
433

 
—

 
433

Unrealized foreign currency translation adjustments
 
10

 
(1
)
 
9

Unrecognized pension and other postretirement benefit cost (1)
 
(104
)
 
71

 
(33
)
Other comprehensive income, after-tax
 
339

 
70

 
409

Comprehensive income
 
$
2,216

 
$
1

 
$
2,217

(1) Financial statement line item has been updated to “Unamortized pension and other postretirement prior service credit”.
Consolidated Statements of Financial Position
 
 
 
 
Previously reported
 
Impact of change
 
As adjusted
($ in millions)
 
December 31, 2018
Retained income
 
$
45,708

 
$
(1,675
)
 
$
44,033

Unrealized foreign currency translation adjustments
 
(64
)
 
15

 
(49
)
Unrecognized pension and other postretirement benefit cost 
 
(1,491
)
 
1,660

 
169

Total AOCI
 
$
(1,557
)
 
$
1,675

 
$
118

 
 
 
 
 
 
 
 
 
December 31, 2017
Retained income
 
$
43,162

 
$
(1,583
)
 
$
41,579

Unrealized foreign currency translation adjustments
 
(9
)
 
8

 
(1
)
Unrecognized pension and other postretirement benefit cost 
 
(1,347
)
 
1,575

 
228

Total AOCI
 
$
306

 
$
1,583

 
$
1,889




Consolidated Statements of Shareholders’ Equity

 
 
 
 
 
 
 
 
Previously reported
 
Impact of change
 
As adjusted
($ in millions)
 
Year Ended December 31, 2018
Retained income
 
 
 
 
 
 
Balance, beginning of year
 
$
43,162

 
$
(1,583
)
 
$
41,579

Cumulative effect of change in accounting principle
 
1,088

 
—

 
1,088

Net income
 
2,252

 
(92
)
 
2,160

Dividends on common stock (declared per share of $1.84)
 
(646
)
 
—

 
(646
)
Dividends on preferred stock
 
(148
)
 
—

 
(148
)
Balance, end of year
 
45,708

 
(1,675
)
 
44,033

 
 
 
 
 
 
 
Accumulated other comprehensive income (loss)
 
 
 
 
 
 
Balance, beginning of year
 
306

 
1,583

 
1,889

Cumulative effect of change in accounting principle
 
(910
)
 
—

 
(910
)
Change in unrealized net capital gains and losses
 
(754
)
 
—

 
(754
)
Change in unrealized foreign currency translation adjustments
 
(55
)
 
7

 
(48
)
Change in unrecognized pension and other postretirement benefit cost (1)
 
(144
)
 
85

 
(59
)
Balance, end of year
 
$
(1,557
)
 
$
1,675

 
$
118

 
 
 
 
 
 
 
 
 
Year Ended December 31, 2017
Retained income
 
 
 
 
 
 
Balance, beginning of year
 
$
40,678

 
$
(1,669
)
 
$
39,009

Net income
 
3,189

 
365

 
3,554

Dividends on common stock (declared per share of $1.48)
 
(540
)
 
—

 
(540
)
Dividends on preferred stock
 
(116
)
 
—

 
(116
)
Reclassification of tax effects due to change in accounting principle
 
(49
)
 
(279
)
 
(328
)
Balance, end of year
 
43,162

 
(1,583
)
 
41,579

 
 
 
 
 
 
 
Accumulated other comprehensive income (loss)
 
 
 
 
 
 
Balance, beginning of year
 
(416
)
 
1,665

 
1,249

Change in unrealized net capital gains and losses
 
319

 
—

 
319

Change in unrealized foreign currency translation adjustments
 
47

 
(2
)
 
45

Change in unrecognized pension and other postretirement benefit cost (1)
 
307

 
(359
)
 
(52
)
Reclassification of tax effects due to change in accounting principle
 
49

 
279

 
328

Balance, end of year
 
$
306

 
$
1,583

 
$
1,889

 
 
 
 
 
 
 
 
 
Year Ended December 31, 2016
Retained income
 
 
 
 
 
 
Balance, beginning of year
 
$
39,413

 
$
(1,600
)
 
$
37,813

Net income
 
1,877

 
(69
)
 
1,808

Dividends on common stock (declared per share of $1.32)
 
(496
)
 
—

 
(496
)
Dividends on preferred stock
 
(116
)
 
—

 
(116
)
Balance, end of year
 
40,678

 
(1,669
)
 
39,009

 
 
 
 
 
 
 
Accumulated other comprehensive income (loss)
 
 
 
 
 
 
Balance, beginning of year
 
(755
)
 
1,595

 
840

Change in unrealized net capital gains and losses
 
433

 
—

 
433

Change in unrealized foreign currency translation adjustments
 
10

 
(1
)
 
9

Change in unrecognized pension and other postretirement benefit cost (1)
 
(104
)
 
71

 
(33
)
Balance, end of year
 
$
(416
)
 
$
1,665

 
$
1,249

Total shareholders’ equity
 
$
20,573

 
$
(4
)
 
$
20,569

(1) Financial statement line item has been updated to “Change in unamortized pension and other postretirement prior service credit”.
Consolidated Statements of Cash Flows
 
 
 
 
Previously reported
 
Impact of change
 
As adjusted
($ in millions)
 
Year Ended December 31, 2018
Cash flows from operating activities
 
 
 
 
 
 
Net income
 
$
2,252

 
$
(92
)
 
$
2,160

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
Pension and other postretirement remeasurement gains and losses
 
—

 
468

 
468

Income taxes
 
(356
)
 
(24
)
 
(380
)
Other operating assets and liabilities
 
1,207

 
(352
)
 
855

Net cash provided by operating activities
 
$
5,175

 
$
—

 
$
5,175

 
 
 
 
 
 
 
 
 
Year Ended December 31, 2017
Cash flows from operating activities
 
 
 
 
 
 
Net income
 
$
3,189

 
$
365

 
$
3,554

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
Pension and other postretirement remeasurement gains and losses
 
—

 
(217
)
 
(217
)
Income taxes
 
(245
)
 
193

 
(52
)
Other operating assets and liabilities
 
328

 
(341
)
 
(13
)
Net cash provided by operating activities
 
$
4,314

 
$
—

 
$
4,314

 
 
 
 
 
 
 
 
 
Year Ended December 31, 2016
Cash flows from operating activities
 
 
 
 
 
 
Net income
 
$
1,877

 
$
(69
)
 
$
1,808

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
Pension and other postretirement remeasurement gains and losses
 
—

 
270

 
270

Income taxes
 
417

 
(36
)
 
381

Other operating assets and liabilities
 
(16
)
 
(165
)
 
(181
)
Net cash provided by operating activities
 
$
3,993

 
$
—

 
$
3,993

Reportable segments financial performance
 
 
Net income (loss) applicable to common shareholders
 
Underwriting income or Adjusted net income (loss) (2)
 
 
For the years ended December 31,
 
 
Previously reported
($ in millions)
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Property-Liability (1)
 
$
2,341

 
$
2,587

 
$
1,661

 
$
2,097

 
$
2,012

 
$
1,220

Service Businesses
 
(85
)
 
15

 
3

 
2

 
(59
)
 
3

Allstate Life
 
254

 
577

 
219

 
289

 
253

 
247

Allstate Benefits
 
113

 
146

 
96

 
119

 
95

 
100

Allstate Annuities
 
75

 
418

 
76

 
130

 
204

 
101

Corporate and Other
 
(594
)
 
(670
)
 
(294
)
 
(542
)
 
(399
)
 
(292
)
Consolidated
 
$
2,104

 
$
3,073

 
$
1,761

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impact of change
 
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Property-Liability
 
$
124

 
$
226

 
$
97

 
$
156

 
$
193

 
$
150

Service Businesses
 
6

 
8

 
2

 
6

 
5

 
2

Allstate Life
 
6

 
12

 
4

 
6

 
6

 
4

Allstate Benefits
 
5

 
8

 
3

 
5

 
5

 
3

Allstate Annuities
 
1

 
1

 
1

 
1

 
1

 
1

Corporate and Other
 
(234
)
 
110

 
(176
)
 
136

 
79

 
(1
)
Consolidated
 
$
(92
)
 
$
365

 
$
(69
)
 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As adjusted
 
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Property-Liability
 
$
2,465

 
$
2,813

 
$
1,758

 
$
2,253

 
$
2,205

 
$
1,370

Service Businesses
 
(79
)
 
23

 
5

 
8

 
(54
)
 
5

Allstate Life
 
260

 
589

 
223

 
295

 
259

 
251

Allstate Benefits
 
118

 
154

 
99

 
124

 
100

 
103

Allstate Annuities
 
76

 
419

 
77

 
131

 
205

 
102

Corporate and Other
 
(828
)
 
(560
)
 
(470
)
 
(406
)
 
(320
)
 
(293
)
Consolidated
 
$
2,012

 
$
3,438

 
$
1,692

 

 

 

(1) 
Allstate Protection and Discontinued Lines and Coverages segments comprise Property-Liability.
(2) 
The measure of segment profit or loss used in evaluating performance is underwriting income for the Allstate Protection and Discontinued Lines and Coverages segments while all other segments use adjusted net income (loss).