Earnings per Common Share

9 Months Ended

Sep. 30, 2020

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 September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Numerator:
Net income	$	1,153	$	931	$	2,952	$	3,074
Less: Preferred stock dividends	27		42		89		103
Net income applicable to common shareholders	$	1,126	$	889	$	2,863	$	2,971
Denominator:
Weighted average common shares outstanding	311.2		327.7		314.1		330.8
Effect of dilutive potential common shares:
Stock options	1.6		3.4		2.3		3.2
Restricted stock units (non-participating) and performance stock awards	1.3		1.9		1.5		1.7
Weighted average common and dilutive potential common shares outstanding	314.1		333.0		317.9		335.7
Earnings per common share - Basic	$	3.62	$	2.71	$	9.11	$	8.98
Earnings per common share - Diluted	3.58		2.67		9.01		8.85
Anti-dilutive options excluded from diluted earnings per common share	4.2		1.8		3.0		3.7