Acquisitions and Dispositions (Table)

9 Months Ended

Sep. 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	$	4,957
Cash	400
Premiums and other receivables, net	1,539
Deferred acquisition costs (value of business acquired)	317
Reinsurance recoverables, net	1,212
Intangible assets	1,199
Other assets	736
Goodwill (2)	1,010
Total assets	11,370
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	363
Debt (3)	593
Deferred tax liabilities	145
Other liabilities	763
Total liabilities	$	7,060

(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)$637 million, $22 million and $351 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. As of September 30, 2021, the Company had principal balance remaining of $350 million 6.750% Senior Notes due 2024, with a fair value adjustment of $50 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 September 30,				Nine months ended September 30,
($ in millions)	2021		2020		2021		2020
Revenues
Life premiums and contract charges	$	331	$	333	$	1,007	$	1,009
Net investment income	427		368		1,251		732
Realized capital gains (losses)	4		121		193		85
Total revenues	762		822		2,451		1,826
Costs and expenses
Life contract benefits	411		599		1,207		1,333
Interest credited to contractholder funds	127		142		371		456
Amortization of DAC	27		106		84		147
Operating costs and expenses	45		58		151		176
Restructuring and related charges	7		4		30		6
Total costs and expenses	617		909		1,843		2,118
Amortization of deferred gain on reinsurance	1		1		5		3
Income (loss) from discontinued operations before income tax expense	146		(86)		613		(289)
Income tax expense (benefit)	38		(23)		131		(82)
Income (loss) from discontinued operations, net of tax	108		(63)		482		(207)
Loss on disposition of operations	89		—		(4,048)		—
Income tax benefit	(128)		—		(294)		—
Loss on disposition of operations, net of tax	217		—		(3,754)		—
Income (loss) from discontinued operations, net of tax	$	325	$	(63)	$	(3,272)	$	(207)

Major classes of assets and liabilities to be transferred in transactions
($ in millions)	September 30, 2021		December 31, 2020
Assets
Investments
Fixed income securities, at fair value (amortized cost, net $25,673 and $21,417)	$	27,469	$	23,789
Equity securities, at fair value (cost $23 and $1,113)	16		1,542
Mortgage loans, net	2,719		3,329
Limited partnership interests	1,633		3,046
Short-term, at fair value (amortized cost $1,155 and $993)	1,155		993
Other, net	827		1,998
Total investments	33,819		34,697
Cash	156		66
Deferred policy acquisitions costs	992		925
Reinsurance recoverables, net	1,930		2,005
Accrued investment income	242		229
Other assets	359		865
Separate accounts	3,335		3,344
Assets held for sale	40,833		42,131
Less: loss accrual	4,030		—
Total assets held for sale	$	36,803	$	42,131
Liabilities
Reserve for future policy benefits	$	11,579	$	11,740
Contractholder funds	15,897		16,356
Deferred income taxes	945		973
Other liabilities and accrued expenses	665		912
Separate accounts	3,335		3,344
Total liabilities held for sale	$	32,421	$	33,325

Cash flows from discontinued operations
	Nine months ended September 30,
($ in millions)	2021		2020
Net cash provided by operating activities from discontinued operations	$	888	$	104
Net cash (used in) provided by investing activities from discontinued operations	(405)		264