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Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Schedule of Goodwill by reporting unit The Company’s goodwill reporting units are equivalent to its reportable segments, Allstate Protection, Service Businesses, Allstate Life and Allstate Benefits to which goodwill has been assigned.
Goodwill by reporting unit
 
 
 As of December 31,
($ in millions)
 
2019
 
2018
Allstate Protection
 
$
810

 
$
810

Service Businesses
 
1,464

 
1,449

Allstate Life
 
175

 
175

Allstate Benefits
 
96

 
96

Total
 
$
2,545

 
$
2,530
Future amortization expense
Amortization expense of intangible assets for the next five years and thereafter
($ in millions)
 
 
2020
 
$
109

2021
 
91

2022
 
74

2023
 
60

2024
 
45

Thereafter
 
64

Total amortization
 
$
443
Schedule of indefinite-lived intangible assets
Intangible assets by type
 
 
 As of December 31,
($ in millions)
 
2019
 
2018
Customers relationships
 
$
419

 
$
530

Trade names and licenses
 
38

 
143

Technology and other
 
24

 
40

Total
 
$
481

 
$
713
Schedule of finite-lived intangible assets
Intangible assets by type
 
 
 As of December 31,
($ in millions)
 
2019
 
2018
Customers relationships
 
$
419

 
$
530

Trade names and licenses
 
38

 
143

Technology and other
 
24

 
40

Total
 
$
481

 
$
713
Computation of basic and diluted earnings per common share
Computation of basic and diluted earnings per common share
 
 
For the years ended December 31,
($ in millions, except per share data)
 
2019
 
2018
 
2017
Numerator:
 
 
 
 
 
 
Net income
 
$
4,847

 
$
2,160

 
$
3,554

Less: Preferred stock dividends
 
169

 
148

 
116

Net income applicable to common shareholders (1)
 
$
4,678

 
$
2,012

 
$
3,438

 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
Weighted average common shares outstanding
 
328.2

 
347.8

 
362.0

Effect of dilutive potential common shares:
 
 
 
 
 
 
Stock options
 
3.2

 
3.6

 
4.3

Restricted stock units (non-participating) and performance stock awards
 
2.1

 
1.8

 
1.5

Weighted average common and dilutive potential common shares outstanding
 
333.5

 
353.2

 
367.8

 
 
 
 
 
 
 
Earnings per common share – Basic
 
$
14.25

 
$
5.78

 
$
9.50

Earnings per common share – Diluted
 
$
14.03

 
$
5.70

 
$
9.35

 
 
 
 
 
 
 
Anti-dilutive options excluded from diluted earnings per common share
 
3.7

 
2.0

 
1.5
Schedule of changes in accounting principles
The impacts of the adjustments on the financial statements are summarized in the following tables.

Consolidated Statements of Operations
 
 
Previous accounting principle
 
Impact of change (1)
 
As reported
($ in millions, except per share data)
 
Year Ended December 31, 2019
Property and casualty insurance claims and claims expense
 
$
24,074

 
$
(98
)
 
$
23,976

Operating costs and expenses
 
5,752

 
(62
)
 
5,690

Pension and other postretirement remeasurement gains and losses
 
—

 
114

 
114

Restructuring and related charges
 
41

 
—

 
41

Total costs and expenses
 
38,638

 
(46
)
 
38,592

Income from operations before income tax expense
 
6,043

 
46

 
6,089

Income tax expense
 
1,232

 
10

 
1,242

Net income
 
4,811

 
36

 
4,847

Net income applicable to common shareholders
 
$
4,642

 
$
36

 
$
4,678

 
 
 
 
 
 
 
Earnings per common share:
 
 
 
 
 
 
Net income applicable to common shareholders per common share - Basic
 
$
14.14

 
$
0.11

 
$
14.25

Net income applicable to common shareholders per common share - Diluted
 
$
13.92

 
$
0.11

 
$
14.03

(1) The Company merged two of its pension plans, which had no impact on its financial statements as the Company remeasures pension plan assets and projected benefit obligations immediately in earnings on a quarterly basis.  However, the plan merger increased the impact of change by $41 million for 2019, reflecting the shorter amortization period for losses deferred in AOCI from one of the merged plans that was required as part of the merger. 
Consolidated Statements of Operations
 
 
Previous accounting principle
 
Change in accounting principle
 
As adjusted
 
 
Year Ended December 31, 2018
Property and casualty insurance claims and claims expense
 
$
22,839

 
$
(61
)
 
$
22,778

Operating costs and expenses
 
5,869

 
(275
)
 
5,594

Pension and other postretirement remeasurement gains and losses
 
—

 
468

 
468

Restructuring and related charges
 
83

 
(16
)
 
67

Total costs and expenses
 
37,077

 
116

 
37,193

Income from operations before income tax expense
 
2,744

 
(116
)
 
2,628

Income tax expense
 
492

 
(24
)
 
468

Net income
 
2,252

 
(92
)
 
2,160

Net income applicable to common shareholders
 
$
2,104

 
$
(92
)
 
$
2,012

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

 
$
(0.27
)
 
$
5.78

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

 
$
(0.26
)
 
$
5.70

 
 
 
 
 
 
 
 
 
Year Ended December 31, 2017
Property and casualty insurance claims and claims expense
 
$
21,929

 
$
(82
)
 
$
21,847

Operating costs and expenses
 
5,442

 
(246
)
 
5,196

Pension and other postretirement remeasurement gains and losses
 
—

 
(217
)
 
(217
)
Restructuring and related charges
 
109

 
(13
)
 
96

Total costs and expenses
 
35,436

 
(558
)
 
34,878

Income from operations before income tax expense
 
3,991

 
558

 
4,549

Income tax expense
 
802

 
193

 
995

Net income
 
3,189

 
365

 
3,554

Net income applicable to common shareholders
 
$
3,073

 
$
365

 
$
3,438

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

 
$
1.01

 
$
9.50

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

 
$
0.99

 
$
9.35

Consolidated Statements of Comprehensive Income
 
 
 
 
Previous accounting principle
 
Impact of change
 
As reported
($ in millions)
 
Year Ended December 31, 2019
Net income
 
$
4,811

 
$
36

 
$
4,847

 
 
 
 
 
 
 
Other comprehensive income (loss), after-tax
 
 
 
 
 
 
Changes in:
 
 
 
 
 
 
Unrealized net capital gains and losses
 
1,889

 
—

 
1,889

Unrealized foreign currency translation adjustments
 
(4
)
 
(6
)
 
(10
)
Unrecognized pension and other postretirement benefit cost (1)
 
141

 
(188
)
 
(47
)
Other comprehensive income, after-tax
 
2,026

 
(194
)
 
1,832

 
 
 
 
 
 
 
Comprehensive income
 
6,837

 
(158
)
 
6,679

 
 
 
 
 
 
 
 
 
Year Ended December 31, 2018
Net income
 
$
2,252

 
$
(92
)
 
$
2,160

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

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

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

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

 
(861
)
 
 
 
 
 
 
 
Comprehensive income
 
1,299

 
—

 
1,299

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

 
$
365

 
$
3,554

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

 
—

 
319

Unrealized foreign currency translation adjustments
 
47

 
(2
)
 
45

Unrecognized pension and other postretirement benefit cost (1)
 
307

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

 
(361
)
 
312

 
 
 
 
 
 
 
Comprehensive income
 
3,862

 
4

 
3,866

(1) Financial statement line item has been updated to “Unamortized pension and other postretirement prior service credit“.
Consolidated Statements of Financial Position
 
 
 
 
Previous accounting principle
 
Impact of change
 
As reported
($ in millions)
 
December 31, 2019
Retained income
 
49,713

 
(1,639
)
 
48,074

Unrealized foreign currency translation adjustments
 
(68
)
 
9

 
(59
)
Unrecognized pension and other postretirement benefit cost (1)
 
(1,350
)
 
1,472

 
122

Total AOCI
 
469

 
1,481

 
1,950

Total shareholders’ equity
 
26,156

 
(158
)
 
25,998

 
 
 
 
 
 
 
 
 
December 31, 2018
Retained income
 
45,708

 
(1,675
)
 
44,033

Unrealized foreign currency translation adjustments
 
(64
)
 
15

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

 
169

Total AOCI
 
(1,557
)
 
1,675

 
118

Total shareholders’ equity
 
21,312

 
—

 
21,312

(1) Financial statement line item has been updated to “Unamortized pension and other postretirement prior service credit“.
Consolidated Statements of Shareholders’ Equity

 
 
 
 
 
 
($ in millions)
 
Previous accounting principle
 
Impact of change
 
As reported
 
 
Year Ended December 31, 2019
Retained income
 
 
 
 
 
 
Balance, beginning of year
 
$
45,708

 
$
(1,675
)
 
$
44,033

Cumulative effect of change in accounting principle
 
21

 
—

 
21

Net income
 
4,811

 
36

 
4,847

Dividends on common stock (declared per share of $2.00)
 
(658
)
 
—

 
(658
)
Dividends on preferred stock
 
(169
)
 
—

 
(169
)
Balance, end of year
 
49,713

 
(1,639
)
 
48,074

 
 
 
 
 
 
 
Accumulated other comprehensive income (loss)
 
 
 
 
 
 
Balance, beginning of year
 
(1,557
)
 
1,675

 
118

Cumulative effect of change in accounting principle
 
—

 
—

 
—

Change in unrealized net capital gains and losses
 
1,889

 
—

 
1,889

Change in unrealized foreign currency translation adjustments
 
(4
)
 
(6
)
 
(10
)
Change in unrecognized pension and other postretirement benefit cost (1)
 
141

 
(188
)
 
(47
)
Balance, end of year
 
$
469

 
$
1,481

 
$
1,950

 
 
 
 
 
 
 
 
 
Year Ended December 31, 2018
Retained income
 
 
 
 
 
 
Balance, beginning of year
 
$
43,162

 
$
(1,583
)
 
$
41,579

Cumulative effect of change in accounting principle
 
1,088

 
—

 
1,088

Net income
 
2,252

 
(92
)
 
2,160

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

 
(646
)
Dividends on preferred stock
 
(148
)
 
—

 
(148
)
Balance, end of year
 
45,708

 
(1,675
)
 
44,033

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

 
1,583

 
1,889

Cumulative effect of change in accounting principle
 
(910
)
 
—

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

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

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

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

 
118

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

 
$
(1,669
)
 
$
39,009

Net income
 
3,189

 
365

 
3,554

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

 
(540
)
Dividends on preferred stock
 
(116
)
 
—

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

 
(1,583
)
 
41,579

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

 
1,249

Change in unrealized net capital gains and losses
 
319

 
—

 
319

Change in unrealized foreign currency translation adjustments
 
47

 
(2
)
 
45

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

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

 
279

 
328

Balance, end of year
 
306

 
1,583

 
1,889

(1) Financial statement line item has been updated to “Change in unamortized pension and other postretirement prior service credit”.
Consolidated Statements of Cash Flows
 
 
 
 
Previous accounting principle
 
Impact of change
 
As reported
($ in millions)
 
Year Ended December 31, 2019
Cash flows from operating activities
 
 
 
 
 
 
Net income
 
$
4,811

 
$
36

 
$
4,847

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

 
114

 
114

Income taxes
 
477

 
10

 
487

Other operating assets and liabilities
 
110

 
(160
)
 
(50
)
Net cash provided by operating activities
 
$
5,129

 
$
—

 
$
5,129

 
 
 
 
 
 
 
 
 
Year Ended December 31, 2018
Cash flows from operating activities
 
 
 
 
 
 
Net income
 
$
2,252

 
$
(92
)
 
$
2,160

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

 
468

 
468

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

 
(352
)
 
855

Net cash provided by operating activities
 
$
5,175

 
$
—

 
$
5,175

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

 
$
365

 
$
3,554

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

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

 
(52
)
Other operating assets and liabilities
 
328

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

 
$
—

 
$
4,314