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Reserve for Property and Casualty Insurance Claims and Claims Expense (Tables)
 12 Months Ended
Dec. 31, 2020
Reserve for Property-Liability Insurance Claims and Claims Expense  
Activity in the reserve for property-liability insurance claims and claims expense
Rollforward of reserve for property and casualty insurance claims and claims expense
($ in millions)202020192018
Balance as of January 1$27,712 $27,423 $26,325 
Less recoverables (1)
(6,912)(7,155)(6,471)
Net balance as of January 120,800 20,268 19,854 
Incurred claims and claims expense related to:
Current year22,437 24,106 23,033 
Prior years(436)(130)(255)
Total incurred22,001 23,976 22,778 
Claims and claims expense paid related to:
Current year(14,245)(15,160)(14,877)
Prior years(7,979)(8,284)(7,487)
Total paid(22,224)(23,444)(22,364)
Net balance as of December 3120,577 20,800 20,268 
Plus recoverables7,033 6,912 7,155 
Balance as of December 31$27,610 $27,712 $27,423 
(1) Recoverables comprises reinsurance and indemnification recoverables. See Note 10 for further details.
Reconciliation of total claims and claims expense incurred and paid by coverage
December 31, 2020
($ in millions)IncurredPaid
Allstate Protection
Auto insurance - liability coverage$7,629 $(7,939)
Auto insurance - physical damage coverage4,817 (4,716)
Homeowners insurance4,889 (4,731)
Total auto and homeowners insurance 17,335 (17,386)
Other personal lines1,015 (1,007)
Commercial lines585 (463)
Protection Services
319 (326)
Discontinued Lines and Coverages 132 (88)
Unallocated loss adjustment expenses (“ULAE”)2,681 (2,590)
Claims incurred and paid from before 2016(32)(423)
Other(34)59 
Total$22,001 $(22,224)
Prior year reserve reestimates included in claims and claims expense (1)
Twelve months ended December 31,
($ in millions)Non-catastrophe lossesCatastrophe lossesTotal
202020192018202020192018202020192018
Auto$(63)$(306)$(416)$(44)$(17)$(39)$(107)$(323)$(455)
Homeowners(17)(1)(51)(422)66 65 (439)65 14 
Other personal lines(27)8 (6)(39)— (1)(66)8 (7)
Commercial lines34 18 108 2 (1)— 36 17 108 
Discontinued Lines and Coverages (2)
141 105 87 — — — 141 105 87 
Protection Services
(1)(2)(2)— — — (1)(2)(2)
Total prior year reserve reestimates$67 $(178)$(280)$(503)$48 $25 $(436)$(130)$(255)
(1)Favorable reserve reestimates are shown in parentheses.
(2)The Company’s 2020 annual reserve review, using established industry and actuarial best practices, resulted in unfavorable reestimates of $132 million.
Reserves for asbestos, environmental and other discontinued lines claims before and after the effects of reinsurance
($ in millions) December 31, 2020December 31, 2019
Asbestos claims (1)
Gross reserves$1,204 $1,172 
Reinsurance (377)(362)
Net reserves 827 810 
Environmental claims (1)
Gross reserves249 219 
Reinsurance (43)(40)
Net reserves 206 179 
Other discontinued lines
Gross reserves435 427 
Reinsurance (60)(51)
Net reserves375 376 
Total
Gross reserves
1,888 1,818 
Reinsurance
(480)(453)
Net reserves$1,408 $1,365 
(1) For further discussion of asbestos and environmental reserves, see Note 14.
Short-duration insurance contracts, claims development The information about incurred and paid claims development for the 2016 to 2020 years, and the average annual percentage payout of incurred claims by age as of December 31, 2020, is presented as required supplementary information.
Auto insurance – liability coverage
($ in millions, except number of reported claims)
Incurred claims and allocated claim adjustment expenses, net of recoverables
IBNR reserves plus expected development on reported claimsCumulative number of reported claims
For the years ended December 31,Prior year reserve reestimatesAs of December 31, 2020
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20162017201820192020
2016$9,038 $8,841 $8,740 $8,690 $8,709 $19 $554 2,400,904 
2017— 8,465 8,396 8,312 8,330 18 1,017 2,217,132 
2018— — 8,734 8,715 8,731 16 1,846 2,180,275 
2019— — — 9,341 9,295 (46)3,064 2,205,813 
2020— — — — 7,622 4,919 1,500,921 
Total$42,687 $7 
Reconciliation to total prior year reserve reestimates recognized by line
Prior year reserve reestimates for pre-2016 accident years
(20)
Prior year reserve reestimates for ULAE23 
Other(3)
Total prior year reserve reestimates$7 
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables
For the years ended December 31,
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20162017201820192020
2016$3,487 $5,772 $6,853 $7,700 $8,155 
2017— 3,151 5,333 6,532 7,313 
2018— — 3,231 5,618 6,885 
2019— — — 3,498 6,231 
2020— — — — 2,703 
Total$31,287 
All outstanding liabilities before 2016, net of recoverables
1,389 
Liabilities for claims and claim adjustment expenses, net of recoverables$12,789 
Auto insurance – physical damage coverage
($ in millions, except number of reported claims)Incurred claims and allocated claim adjustment expenses, net of recoverablesIBNR reserves plus expected development on reported claimsCumulative number of reported claims
For the years ended December 31,Prior year reserve reestimatesAs of December 31, 2020
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20162017201820192020
2016$5,128 $5,054 $5,027 $5,023 $5,022 $(1)$5 4,432,048 
2017— 5,121 5,039 5,028 5,027 (1)1 4,237,772 
2018— — 5,219 5,157 5,108 (49)9 4,310,750 
2019— — — 5,662 5,606 (56)26 4,469,473 
2020— — — — 4,924 324 3,493,530 
Total$25,687 $(107)
Reconciliation to total prior year reserve reestimates recognized by line
Prior year reserve reestimates for pre-2016 accident years
(1)
Prior year reserve reestimates for ULAE(5)
Other(1)
Total prior year reserve reestimates$(114)
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables
For the years ended December 31,
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20162017201820192020
2016$4,890 $5,033 $5,022 $5,018 $5,017 
2017— 4,847 5,039 5,030 5,026 
2018— — 4,971 5,140 5,099 
2019— — — 5,418 5,580 
2020— — — — 4,600 
Total$25,322 
All outstanding liabilities before 2016, net of recoverables
8 
Liabilities for claims and claim adjustment expenses, net of recoverables$373 
Homeowners insurance
($ in millions, except number of reported claims)Incurred claims and allocated claim adjustment expenses, net of recoverablesIBNR reserves plus expected development on reported claimsCumulative number of reported claims
For the years ended December 31,Prior year reserve reestimatesAs of December 31, 2020
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20162017201820192020
2016$3,961 $3,995 $3,958 $3,953 $3,948 $(5)$43 814,026 
2017— 4,477 4,619 4,614 4,390 (224)61 908,714 
2018— — 4,749 4,854 4,551 (303)182 811,046 
2019— — — 4,549 4,601 52 301 784,257 
2020— — — — 5,369 1,398 838,829 
Total$22,859 $(480)
Reconciliation to total prior year reserve reestimates recognized by line
Prior year reserve reestimates for pre-2016 accident years
(11)
Prior year reserve reestimates for ULAE52 
Other— 
Total prior year reserve reestimates$(439)
Cumulative paid claims and allocated claims adjustment expenses, net of recoverables
For the years ended December 31,
(unaudited)(unaudited)(unaudited)(unaudited)
Accident year20162017201820192020
2016$2,949 $3,680 $3,811 $3,876 $3,905 
2017— 3,228 4,249 4,437 4,329 
2018— — 3,491 4,514 4,369 
2019— — — 3,316 4,300 
2020— — — — 3,971 
Total$20,874 
All outstanding liabilities before 2016, net of recoverables
119 
Liabilities for claims and claim adjustment expenses, net of recoverables$2,104 
Average annual percentage payout of incurred claims by age, net of reinsurance
Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2020
1 year2 years3 years4 years5 years
Auto insurance – liability coverage
39.4 %27.5 %13.1 %8.4 %4.9 %
Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2020
1 year2 years3 years4 years5 years
Auto insurance – physical damage coverage
96.9 %3.0 %(0.3)%(0.1)%— %
Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2020
1 year2 years3 years4 years5 years
Homeowners insurance75.2 %19.4 %2.5 %0.9 %0.7 %
Reconciliation of the net incurred claims and claims expense development
Reconciliation of the net incurred and paid claims development tables above to the reserve for property and casualty insurance claims and claims expense
($ in millions)As of December 31, 2020
Net outstanding liabilities
Allstate Protection
Auto insurance - liability coverage$12,789 
Auto insurance - physical damage coverage373 
Homeowners insurance2,104 
Other personal lines1,335 
Commercial lines1,132 
Protection Services
30 
Discontinued Lines and Coverages (1)
1,330 
ULAE1,484 
Net reserve for property and casualty insurance claims and claims expense20,577 
Recoverables
Allstate Protection
Auto insurance - liability coverage5,979 
Auto insurance - physical damage coverage4 
Homeowners insurance171 
Other personal lines153 
Commercial lines196 
Protection Services
10 
Discontinued Lines and Coverages479 
ULAE41 
Total recoverables7,033 
Gross reserve for property and casualty insurance claims and claims expense$27,610 
(1)Discontinued Lines and Coverages includes business in run-off with most of the claims related to accident years more than 30 years ago. IBNR reserves represent $695 million of the total reserves as of December 31, 2020.