Reportable Segments

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Reportable Segments

Note 4 Reportable 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 Run-off Property-Liability (previously Discontinued Lines and Coverages) segments and adjusted net income for the Protection Services, Allstate Health and Benefits (previously Allstate Benefits) and Corporate and Other segments.

National General results are included in the following segments:

•Property and casualty - Allstate Protection

•Accident and health - Allstate Health and Benefits

•Technology solutions - Protection Services

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 (loss) applicable to common shareholders, excluding:

• Realized capital gains and losses, 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

• Business combination expenses and amortization or impairment of purchased intangibles

• Income or loss from discontinued operations

• 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

• Income tax expense or benefit on reconciling items

A reconciliation of these measures to net income (loss) applicable to common shareholders is provided below.

Reportable segments financial performance
	Three months ended June 30,				Six months ended June 30,
($ in millions)	2021		2020		2021		2020
Underwriting income (loss) by segment
Allstate Protection	$	431	$	905	$	2,091	$	2,256
Run-off Property-Liability	(2)		(3)		(5)		(6)
Adjusted net income (loss) by segment, after-tax
Protection Services	56		38		105		75
Allstate Health and Benefits	62		5		127		29
Corporate and Other	(112)		(99)		(235)		(206)
Reconciling items
Property-Liability net investment income	931		178		1,604		380
Realized capital gains (losses)	287		440		713		278
Pension and other postretirement remeasurement gains (losses)	134		(73)		444		(391)
Business combination expenses and amortization of purchased intangibles (1)	(34)		(26)		(90)		(53)
Business combination fair value adjustment	6		—		6		—
Income tax expense on reconciling items	(354)		(285)		(976)		(481)
Total reconciling items	970		234		1,701		(267)
Income (loss) from discontinued operations	493		167		(3,670)		(203)
Income tax (expense) benefit from discontinued operations	(297)		(23)		73		59
Total from discontinued operations	$	196	$	144	$	(3,597)	$	(144)
Less: Net income (loss) attributable to noncontrolling interest	6		—		—		—
Net income applicable to common shareholders	$	1,595	$	1,224	$	187	$	1,737

(1)Excludes amortization of purchased intangibles in Property-Liability, which is included above in underwriting income.

Reportable segments revenue information
($ in millions)	Three months ended June 30,				Six months ended June 30,
	2021		2020		2021		2020
Property-Liability
Insurance premiums
Auto	$	6,883	$	6,172	$	13,692	$	12,327
Homeowners	2,411		2,054		4,803		4,091
Other personal lines	519		478		1,024		949
Commercial lines	196		159		386		377
Allstate Protection	10,009		8,863		19,905		17,744
Run-off Property-Liability	—		—		—		—
Total Property-Liability insurance premiums	10,009		8,863		19,905		17,744
Other revenue	321		206		706		419
Net investment income	931		178		1,604		380
Realized capital gains (losses)	265		382		669		279
Total Property-Liability	11,526		9,629		22,884		18,822
Protection Services
Protection plans	279		219		539		425
Roadside assistance	47		44		94		95
Finance and insurance products	109		97		213		194
Intersegment premiums and service fees (1)	46		35		87		73
Other revenue	88		51		178		103
Net investment income	12		11		22		21
Realized capital gains (losses)	6		19		16		(5)
Total Protection Services	587		476		1,149		906
Allstate Health and Benefits
Employer voluntary benefits	255		263		518		545
Group health	87		—		170		—
Individual accident and health	105		—		214		—
Other revenue	83		—		163		—
Net investment income	19		20		38		40
Realized capital gains (losses)	4		11		6		(3)
Total Allstate Health and Benefits	553		294		1,109		582
Corporate and Other
Other revenue	2		—		2		—
Net investment income	12		11		18		25
Realized capital gains (losses)	12		28		22		7
Total Corporate and Other	26		39		42		32
Intersegment eliminations (1)	(46)		(35)		(87)		(73)
Consolidated revenues	$	12,646	$	10,403	$	25,097	$	20,269

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