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Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Volume and fair value positions of derivative instruments and location in the Consolidated Statement of Financial Position
Summary of the volume and fair value positions of derivative instruments as of June 30, 2021
($ in millions, except number of contracts) 
Volume (1)
   
Balance sheet locationNotional amountNumber of contractsFair value, netGross assetGross liability
Asset derivatives      
Derivatives not designated as accounting hedging instruments   
 
 
Interest rate contracts    
 
 
FuturesOther assetsn/a280 $— $— $— 
Equity and index contracts    
 
 
OptionsOther investmentsn/a15,061 25 25 — 
FuturesOther assetsn/a1,183 — — — 
Total return index contracts
Total return swap agreements – fixed incomeOther investments$50 n/a1 1 — 
Foreign currency contracts    
 
 
Foreign currency forwardsOther investments593 n/a6 16 (10)
Embedded derivative financial instruments   
 
 
Other embedded derivative financial instrumentsOther investments750 n/a— — — 
Credit default contracts    
 
 
Credit default swaps – buying protectionOther investments61 n/a(3)— (3)
Credit default swaps – selling protectionOther investments905 n/a19 19 — 
Assets held for sale221 2,601 180 182 (2)
Total asset derivatives $2,580 19,125 $228 $243 $(15)
Liability derivatives      
Derivatives not designated as accounting hedging instruments     
Interest rate contracts      
FuturesOther liabilities & accrued expensesn/a1,073 $— $— $— 
Equity and index contracts      
OptionsOther liabilities & accrued expensesn/a15,000 (13)— (13)
FuturesOther liabilities & accrued expensesn/a693 — — — 
Foreign currency contracts      
Foreign currency forwardsOther liabilities & accrued expenses$10 n/a— — — 
Credit default contracts      
Credit default swaps – buying protectionOther liabilities & accrued expenses102 n/a(10)— (10)
Liabilities held for sale2,179 2,525 (601)2 (603)
Total liability derivatives 2,291 19,291 (624)$2 $(626)
Total derivatives $4,871 38,416 $(396)  
(1)    Volume for OTC and cleared derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable)
Summary of the volume and fair value positions of derivative instruments as of December 31, 2020
($ in millions, except number of contracts) Volume   
Balance sheet locationNotional amountNumber of contractsFair value, netGross assetGross liability
Asset derivatives      
Derivatives not designated as accounting hedging instruments    
 
Interest rate contracts     
 
FuturesOther assetsn/a290 $— $— $— 
Equity and index contracts     
 
OptionsOther investmentsn/a56 6 6 — 
Futures Other assetsn/a905 1 1 — 
Foreign currency contracts     
 
Foreign currency forwardsOther investments$291 n/a4 9 (5)
Embedded derivative financial instruments     
 
Other embedded derivative financial instrumentsOther investments750 n/a— — — 
Credit default contracts     
 
Credit default swaps – buying protectionOther investments60 n/a(3)— (3)
Credit default swaps – selling protectionOther investments750 n/a13 13 — 
Assets held for sale158 3,189 185 189 (4)
Total asset derivatives $2,009 4,440 $206 $218 $(12)
Liability derivatives      
Derivatives not designated as accounting hedging instruments     
Interest rate contracts      
FuturesOther liabilities & accrued expensesn/a705 $— $— $— 
Equity and index contracts      
FuturesOther liabilities & accrued expensesn/a666 — — — 
Total return index contracts
Total return swap agreements – fixed incomeOther liabilities & accrued expenses$50 n/a— — — 
Foreign currency contracts      
Foreign currency forwardsOther liabilities & accrued expenses250 n/a(9)1 (10)
Credit default contracts      
Credit default swaps – buying protectionOther liabilities & accrued expenses638 n/a(16)— (16)
Credit default swaps – selling protectionOther liabilities & accrued expenses4 n/a— — — 
Liabilities held for sale2,240 2,737 (630)1 (631)
Total liability derivatives 3,182 4,108 (655)$2 $(657)
Total derivatives $5,191 8,548 $(449)  
Schedule of gross and net amount for the Company's OTC derivatives subject to enforceable master netting arrangements
Gross and net amounts for OTC derivatives (1)
($ in millions) Offsets   
Gross amountCounter-party nettingCash collateral (received) pledgedNet amount on balance sheetSecurities collateral (received) pledgedNet amount
June 30, 2021      
Asset derivatives$17 $(13)$(1)$3 $— $3 
Liability derivatives(13)13 — — — — 
December 31, 2020      
Asset derivatives$10 $(9)$— $1 $— $1 
Liability derivatives(19)9 9 (1)— (1)
(1)All OTC derivatives are subject to enforceable master netting agreements.
Gains and losses from valuation, settlements, and hedge ineffectiveness, fair value hedges and derivatives not designated as hedges
Gains (losses) from valuation and settlements reported on derivatives not designated as accounting hedges
($ in millions)Realized capital gains (losses)Operating costs and expensesTotal gain (loss) recognized in net income on derivatives
Three months ended June 30, 2021   
Interest rate contracts$2 $— $2 
Equity and index contracts(6)14 8 
Foreign currency contracts(2)— (2)
Credit default contracts1 — 1 
Total return swaps - fixed income2 — 2 
Total$(3)$14 $11 
Six months ended June 30, 2021   
Interest rate contracts$1 $— $1 
Equity and index contracts(8)30 22 
Foreign currency contracts8 — 8 
Credit default contracts5 — 5 
Total return swaps - fixed income2 — 2 
Total$8 $30 $38 
Three months ended June 30, 2020   
Interest rate contracts$1 $— $1 
Equity and index contracts(3)31 28 
Foreign currency contracts(4)— (4)
Credit default contracts13 — 13 
Total return swaps - fixed income7 — 7 
Total return swaps - equity index— — — 
Total$14 $31 $45 
Six months ended June 30, 2020   
Interest rate contracts$36 $— $36 
Equity and index contracts30 (14)16 
Foreign currency contracts21 — 21 
Credit default contracts3 — 3 
Total return swaps - fixed income(2)— (2)
Total return swaps - equity index4 — 4 
Total$92 $(14)$78 
Counterparty credit exposure by counterparty credit rating
OTC derivatives counterparty credit exposure by counterparty credit rating
($ in millions)June 30, 2021December 31, 2020
Rating (1)
Number of
counter-
parties
Notional
amount (2)
Credit
exposure (2)
Exposure, net of collateral (2)
Number of
counter-
parties
Notional
amount (2)
Credit
exposure (2)
Exposure, net of collateral (2)
A+2 $190 $6 $1 1 $186 $4 $— 
A1 236 3 — — — — — 
Total3 $426 $9 $1 1 $186 $4 $— 
(1)    Allstate uses the lower of S&P’s or Moody’s long-term debt issuer ratings.
(2)    Only OTC derivatives with a net positive fair value are included for each counterparty.
Derivative instruments with credit features in a liability position, including fair value of assets and collateral netted against the liability
($ in millions)June 30, 2021December 31, 2020
Gross liability fair value of contracts containing credit-risk-contingent features$12 $19 
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs(9)(6)
Collateral posted under MNAs for contracts containing credit-risk-contingent features(3)(13)
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently$— $— 
Schedule of derivative CDS notional amount by credit rating and fair value of protection sold
CDS notional amounts by credit rating and fair value of protection sold
($ in millions)Notional amount 
AAAAAABBB
BB and
lower
Total
Fair
value
June 30, 2021      
Single name      
Corporate debt$— $— $— $— $5 $5 $— 
Index 
Corporate debt7 14 179 610 90 900 19 
Total$7 $14 $179 $610 $95 $905 $19 
December 31, 2020      
Single name      
Corporate debt$— $— $— $— $4 $4 $— 
Index 
Corporate debt6 12 156 492 84 750 13 
Total$6 $12 $156 $492 $88 $754 $13