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Variable Interest Entities
9 Months Ended
Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable Interest Entities
Note 8Variable Interest Entities
Consolidated VIEs, of which the Company is the primary beneficiary, primarily include Adirondack Insurance Exchange, a New York reciprocal insurer, and New Jersey Skylands Insurance Association, a New Jersey reciprocal insurer (together “Reciprocal Exchanges”). The Reciprocal Exchanges are insurance carriers organized as unincorporated associations. The Company does not own the equity of the Reciprocal Exchanges, which is owned by their respective policyholders.
The Company manages the business operations of the Reciprocal Exchanges and has the power to direct their activities that most significantly impact their economic performance. The Company receives a management fee for the services provided to the Reciprocal Exchanges. In addition, the Company holds
interests that provide capital to the Reciprocal Exchanges and would absorb any expected losses. The Company is therefore the primary beneficiary.
In the event of dissolution, policyholders would share any residual unassigned surplus but are not subject to assessment for any deficit in unassigned surplus of the Reciprocal Exchanges. The assets of the Reciprocal Exchanges can be used only to settle the obligations of the Reciprocal Exchanges and general creditors have no recourse to the Company. The results of operations of the Reciprocal Exchanges are included in the Company’s Allstate Protection segment and generated $47 million and $137 million of earned premiums in the three and nine months ended September 30, 2021, respectively.
Assets and liabilities of Reciprocal Exchanges
($ in millions)September 30, 2021
Assets
Fixed income securities$330 
Short-term investments47 
Deferred policy acquisition costs15 
Premium installment and other receivables, net43 
Reinsurance recoverables, net117 
Other assets124 
Total assets676 
Liabilities
Reserve for property and casualty insurance claims and claims expense238 
Unearned premiums194 
Other liabilities and expenses273 
Total liabilities$705