The Company’s chief operating decision maker reviews financial performance and makes decisions about the allocation of resources for the seven reportable segments. These segments are described below and align with the Company’s key product and service offerings.

Allstate Protection principally offers private passenger auto and homeowners insurance in the United States and Canada, with earned premiums accounting for 79.4% of Allstate’s 2020 consolidated revenues. Allstate Protection primarily operates in the U.S. (all 50 states and the District of Columbia (“D.C.”)) and Canada. For 2020, the top U.S. geographic locations for premiums earned by the Allstate Protection segment were Texas, California, New York and Florida. No other jurisdiction accounted for more than 5% of premium earned for Allstate Protection. Revenues from external customers generated outside the United States were $1.57 billion, $1.37 billion and $1.20 billion in 2020, 2019 and 2018, respectively.

Discontinued Lines and Coverages includes property and casualty insurance coverage that

primarily relates to policies written during the 1960s through the mid-1980s. Our exposure to asbestos, environmental and other discontinued lines claims arises principally from direct excess commercial insurance, assumed reinsurance coverage, direct primary commercial insurance and other businesses in run-off.

Protection Services comprise Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside, Arity and Allstate Identity Protection. Protection Services offer consumer product protection plans, finance and insurance products (including vehicle service contracts, guaranteed asset protection waivers, road hazard tire and wheel and paintless dent repair protection), roadside assistance, device and mobile data collection services and analytic solutions using automotive telematics information and identity protection. Protection Services primarily operate in the U.S. and Canada, with Allstate Protection Plans also offering services in Europe and Japan. Revenues from external customers generated outside the United States relate to consumer product protection plans sold primarily in

the European Union and were $188 million, $95 million and $61 million in 2020, 2019 and 2018, respectively.

Allstate Life consists of traditional, interest-sensitive and variable life insurance products. Allstate Life primarily operates in the U.S. (all 50 states and D.C.). For 2020, the top geographic locations for statutory direct life insurance premiums were New York, California, Texas, Florida and Illinois. No other jurisdiction accounted for more than 5% of statutory direct life insurance premiums.

Allstate Benefits offers voluntary benefits products, including life, accident, critical illness, hospital, short-term disability and other health products. Allstate Benefits primarily operates in the U.S. (all 50 states and D.C.) and Canada. For 2020, the top geographic locations for statutory direct accident and health insurance premiums were Florida, Texas, North Carolina, and California. No other jurisdiction accounted for more than 5% of statutory direct accident and health insurance premiums. Revenues from external customers generated outside the United States relate to voluntary accident and health insurance sold in Canada and were not material.

Allstate Annuities consists primarily of deferred fixed annuities and immediate annuities (including standard and sub-standard structured settlements). This segment is in run-off.

Corporate and Other comprises holding company activities and certain non-insurance operations, including expenses associated with strategic initiatives.

Allstate Protection and Discontinued Lines and Coverages segments comprise Property-Liability. The Company does not allocate investment income, realized capital gains and losses, or assets to the Allstate Protection and Discontinued Lines and Coverages segments. Management reviews assets at the Property-Liability, Protection Services, Allstate Life, Allstate Benefits, Allstate Annuities, and Corporate and Other levels for decision-making purposes.

The accounting policies of the reportable segments are the same as those described in Note 2. The effects of intersegment transactions are eliminated in the consolidated results. For segment

results, services provided by Protection Services to Allstate Protection are not eliminated as management considers those transactions in assessing the results of the respective 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 Discontinued Lines and Coverages segments and adjusted net income for the Protection Services, Allstate Life, Allstate Benefits, Allstate Annuities, and Corporate and Other segments. A reconciliation of these measures to net income applicable to common shareholders is provided below.

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 applicable to common shareholders, excluding:


• Realized capital gains and losses, after-tax, 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, after-tax
• Valuation changes on embedded derivatives that are not hedged, after-tax
• Amortization of DAC and DSI, to the extent they resulted from the recognition of certain realized capital gains and losses or valuation changes on embedded derivatives that are not hedged, after-tax
• Business combination expenses and the amortization or impairment of purchased intangibles, after-tax
• Gain (loss) on disposition of operations, after-tax
• 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


Reportable segments revenue information
	For the years ended December 31,
($ in millions)	2020		2019		2018
Property-Liability
Insurance premiums
Auto	$	24,640	$	24,188	$	22,970
Homeowners	8,254		7,912		7,517
Other personal lines	1,919		1,861		1,808
Commercial lines	767		882		655

Allstate Protection	35,580		34,843		32,950
Discontinued Lines and Coverages	—		—		—
Total Property-Liability insurance premiums	35,580		34,843		32,950
Other revenue	736		741		738
Net investment income	1,421		1,533		1,464
Realized capital gains (losses)	990		1,470		(639)
Total Property-Liability	38,727		38,587		34,513

Protection Services
Consumer product protection plans	909		633		503
Roadside assistance	188		238		263
Finance and insurance products	396		362		332
Intersegment premiums and service fees (1)	147		154		122
Other revenue (2)	208		188		82
Net investment income	44		42		27
Realized capital gains (losses)	30		32		(11)
Total Protection Services	1,922		1,649		1,318

Allstate Life
Traditional life insurance premiums	633		630		600
Accident and health insurance premiums	2		2		2
Interest-sensitive life insurance contract charges	705		711		713
Other revenue	121		125		119
Net investment income	502		514		505
Realized capital gains (losses)	(10)		1		(14)
Total Allstate Life	1,953		1,983		1,925

Allstate Benefits
Traditional life insurance premiums	46		43		44
Accident and health insurance premiums	926		988		980
Interest-sensitive life insurance contract charges	122		114		111
Net investment income	78		83		77
Realized capital gains (losses)	8		12		(9)
Total Allstate Benefits	1,180		1,240		1,203

Allstate Annuities
Fixed annuities contract charges	10		13		15
Net investment income	761		917		1,096
Realized capital gains (losses)	279		346		(166)
Total Allstate Annuities	1,050		1,276		945

Corporate and Other

Net investment income	47		70		71
Realized capital gains (losses)	59		24		(38)



Total Corporate and Other	106		94		33
Intersegment eliminations (1)	(147)		(154)		(122)
Consolidated revenues	$	44,791	$	44,675	$	39,815

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

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


Reportable segments financial performance
	For the years ended December 31,
($ in millions)	2020		2019		2018
Property-Liability
Allstate Protection	$	4,566	$	2,912	$	2,343
Discontinued Lines and Coverages	(144)		(108)		(90)
Total underwriting income	4,422		2,804		2,253
Net investment income	1,421		1,533		1,464
Income tax expense on operations	(1,166)		(887)		(747)
Realized capital gains (losses), after-tax	774		1,161		(500)

Tax Legislation expense	—		—		(5)
Property-Liability net income applicable to common shareholders	5,451		4,611		2,465

Protection Services
Adjusted net income	153		38		8
Realized capital gains (losses), after-tax	23		25		(9)
Amortization of purchased intangibles, after-tax	(84)		(97)		(74)
Impairment of purchased intangibles, after-tax	—		(43)		—
Tax Legislation expense	—		—		(4)
Protection Services net income (loss) applicable to common shareholders	92		(77)		(79)

Allstate Life
Adjusted net income	194		261		295
Realized capital gains (losses), after-tax	(9)		—		(11)
Valuation changes on embedded derivatives that are not hedged, after-tax	(34)		(9)		—
DAC and DSI amortization related to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax	8		(5)		(8)


Tax Legislation expense	—		—		(16)
Allstate Life net income applicable to common shareholders	159		247		260

Allstate Benefits
Adjusted net income	96		115		124
Realized capital gains (losses), after-tax	7		9		(7)
DAC and DSI amortization related to realized capital gains and losses, after-tax	—		—		1

Tax Legislation benefit	—		—		—
Allstate Benefits net income applicable to common shareholders	103		124		118

Allstate Annuities
Adjusted net (loss) income	(53)		10		131
Realized capital gains (losses), after-tax	221		274		(131)
Valuation changes on embedded derivatives that are not hedged, after-tax	(2)		(6)		3

Premium deficiency for immediate annuities, after-tax (1)	(178)		—		—
Gain on disposition of operations, after-tax	3		4		4

Tax Legislation benefit	—		—		69
Allstate Annuities net (loss) income applicable to common shareholders	(9)		282		76

Corporate and Other
Adjusted net loss	(428)		(438)		(406)
Realized capital gains (losses), after-tax	47		19		(30)
Pension and other postretirement remeasurement gains (losses), after-tax	39		(90)		(370)

Curtailment gain, after-tax	7		—		—
Business combination expenses, after-tax	—		—		(7)
Tax Legislation expense	—		—		(15)
Corporate and Other net loss applicable to common shareholders	(335)		(509)		(828)

Consolidated net income applicable to common shareholders	$	5,461	$	4,678	$	2,012

(1) Contract benefits increased by $225 million, pre-tax, for premium deficiency on immediate annuities with life contingencies due to updated investment and actuarial assumptions in the third quarter of 2020.


Additional significant financial performance data
	For the years ended December 31,
($ in millions)	2020		2019		2018
Amortization of DAC
Property-Liability	$	4,642	$	4,649	$	4,475
Protection Services	658		543		463
Allstate Life	149		173		132
Allstate Benefits	177		161		145
Allstate Annuities	4		7		7
Consolidated	$	5,630	$	5,533	$	5,222


Income tax expense (benefit)
Property-Liability	$	1,382	$	1,196	$	613
Protection Services	26		(18)		(19)
Allstate Life	17		53		75
Allstate Benefits	28		35		32
Allstate Annuities	(7)		73		(66)
Corporate and Other	(63)		(97)		(167)
Consolidated	$	1,383	$	1,242	$	468

Interest expense is primarily incurred in the Corporate and Other segment. Capital expenditures for long-lived assets are generally made in Property-Liability as the Company does not allocate assets to the Allstate Protection and Discontinued Lines and Coverages segments. A portion of these long-lived assets are used by entities included in the Protection Services, Allstate Life, Allstate Benefits, Allstate Annuities and Corporate and Other segments and, accordingly, are charged to expenses in proportion to their use.


Reportable segment total assets, investments and deferred policy acquisition costs (1)
	As of December 31,
($ in millions)	2020		2019
Assets
Property-Liability	$	69,171	$	67,243
Protection Services	6,177		5,746
Allstate Life	15,051		14,771
Allstate Benefits	2,905		2,915
Allstate Annuities	27,080		26,914
Corporate and Other	5,603		2,361
Consolidated	$	125,987	$	119,950


Investments
Property-Liability	$	50,134	$	48,414
Protection Services	1,822		1,544
Allstate Life	12,406		11,914
Allstate Benefits	2,012		1,941
Allstate Annuities	22,291		22,221
Corporate and Other	5,572		2,328
Consolidated	$	94,237	$	88,362

Deferred policy acquisition costs
Property-Liability	$	1,608	$	1,624
Protection Services	1,696		1,448
Allstate Life	909		1,079
Allstate Benefits	470		527
Allstate Annuities	17		21
Consolidated	$	4,700	$	4,699

(1)The balances reflect the elimination of related party investments between segments.