Acquisitions and Dispositions (Table)

6 Months Ended

Jun. 30, 2021

Business Combination and Asset Acquisition [Abstract]

Schedule of recognized identified assets acquired and liabilities assumed

Assets and liabilities recognized in the National General acquisition (1)
($ in millions)	January 4, 2021
Assets
Investments	$	4,958
Cash	400
Premiums and other receivables, net	1,545
Deferred acquisition costs (value of business acquired)	317
Reinsurance recoverables, net	1,219
Intangible assets	1,199
Other assets	736
Goodwill (2)	970
Total assets	11,344
Liabilities
Reserve for property and casualty insurance claims and claims expense	2,765
Reserve for future policy benefits	186
Unearned premiums	2,245
Reinsurance payable	364
Debt (3)	593
Deferred tax liabilities	179
Other liabilities	701
Total liabilities	$	7,033

(1)The amounts reflect preliminary allocation of assets acquired and liabilities assumed. The acquisition date fair values of assets and liabilities, including insurance reserves and intangible assets, as well as the related estimated useful lives of intangibles, are preliminary estimates and are subject to revisions within one year of acquisition date.

(2)$608 million, $21 million and $341 million of goodwill were allocated to the Allstate Protection, Protection Services and Allstate Health and Benefits segments, respectively, and is non-deductible for income tax purposes. Goodwill is primarily attributable to expected synergies and future growth opportunities.

(3)Subsequent to the acquisition, the Company repaid $100 million of 7.625% Subordinated Notes and $72 million of Subordinated Debentures on February 3, 2021 and March 15, 2021, respectively. The Company had principal balance remaining of $350 million 6.750% Senior Notes due 2024 as of June 30, 2021, with a fair value adjustment of $67 million.

Schedule of indefinite-lived intangible assets

Intangible assets by type
($ in millions)	January 4, 2021
Distribution and customer relationships	$	795
Trade names	102
Licenses	97
Technology	205
Total	$	1,199

Schedule of finite-lived intangible assets, future amortization expense

Estimated amortization expense of National General intangible assets for the next five years and thereafter
($ in millions)
2022	$	218
2023	185
2024	135
2025	103
2026	70
Thereafter	140
Total amortization	$	851

Schedule of disposal groups, including discontinued operations

Financial results from discontinued operations
	Three months ended June 30,				Six months ended June 30,
($ in millions)	2021		2020		2021		2020
Revenues
Life premiums and contract charges	$	336	$	341	$	676	$	676
Net investment income	385		189		824		364
Realized capital gains (losses)	110		264		189		(36)
Total revenues	831		794		1,689		1,004
Costs and expenses
Life contract benefits	386		374		796		734
Interest credited to contractholder funds	159		191		244		314
Amortization of DAC	21		5		57		41
Operating costs and expenses	51		57		106		118
Restructuring and related charges	4		1		23		2
Total costs and expenses	621		628		1,226		1,209
Amortization of deferred gain on reinsurance	2		1		4		2
Income (loss) from discontinued operations before income tax expense	212		167		467		(203)
Income tax expense (benefit)	43		23		93		(59)
Income (loss) from discontinued operations, net of tax	169		144		374		(144)
Loss on disposition of operations	281		—		(4,137)		—
Income tax expense (benefit)	254		—		(166)		—
Loss on disposition, net of tax	27		—		(3,971)		—
Income (loss) from discontinued operations, net of tax	$	196	$	144	$	(3,597)	$	(144)

    

Major classes of assets and liabilities to be transferred in transactions
($ in millions)	June 30, 2021		December 31, 2020
Assets
Investments
Fixed income securities, at fair value (amortized cost, net $23,968 and $21,417)	$	25,948	$	23,789
Equity securities, at fair value (cost $1,050 and $1,113)	1,519		1,542
Mortgage loans, net	2,855		3,329
Limited partnership interests	1,746		3,046
Short-term, at fair value (amortized cost $901 and $993)	901		993
Other, net	923		1,998
Total investments	33,892		34,697
Cash	158		66
Deferred policy acquisitions costs	978		925
Reinsurance recoverables, net	1,956		2,005
Accrued investment income	242		229
Other assets	378		865
Separate accounts	3,486		3,344
Assets held for sale	41,090		42,131
Less: loss accrual	4,121		—
Total assets held for sale	$	36,969	$	42,131
Liabilities
Reserve for future policy benefits	$	11,633	$	11,740
Contractholder funds	16,025		16,356
Deferred income taxes	1,028		973
Other liabilities and accrued expenses	603		912
Separate accounts	3,486		3,344
Total liabilities held for sale	$	32,775	$	33,325

Cash flows from discontinued operations
	Six months ended June 30,
($ in millions)	2021		2020
Net cash provided by operating activities from discontinued operations	$	66	$	113
Net cash provided by investing activities from discontinued operations	317		169