Reserve for Property and Casualty Insurance Claims and Claims Expense (Tables)

6 Months Ended

Jun. 30, 2022

Reserve for Property-Liability Insurance Claims and Claims Expense [Abstract]

Schedule of liability for unpaid claims and claims adjustment expense

Rollforward of the reserve for property and casualty insurance claims and claims expense
	Six months ended June 30,
($ in millions)	2022		2021
Balance as of January 1	$	33,060	$	27,610
Less recoverables (1)	(9,479)		(7,033)
Net balance as of January 1	23,581		20,577
National General acquisition as of January 4, 2021	—		1,797
Incurred claims and claims expense related to:
Current year	16,585		13,476
Prior years	604		(226)
Total incurred	17,189		13,250
Claims and claims expense paid related to:
Current year	(7,753)		(6,919)
Prior years	(7,691)		(6,134)
Total paid	(15,444)		(13,053)
Net balance as of June 30	25,326		22,571
Plus recoverables	8,950		9,066
Balance as of June 30	$	34,276	$	31,637

(1)Recoverables comprises reinsurance and indemnification recoverables.

Prior year reserve reestimates included in claims and claims expense (1)
	Non-catastrophe losses				Catastrophe losses				Total
($ in millions)	2022 (2)		2021		2022		2021 (3) (4)		2022		2021
Three months ended June 30,
Auto	$	275	$	(29)	$	(38)	$	(4)	$	237	$	(33)
Homeowners	47		(7)		85		37		132		30
Other personal lines	(5)		(3)		3		4		(2)		1
Commercial lines	91		18		1		—		92		18
Run-off Property-Liability	3		1		—		—		3		1
Protection Services	(3)		(2)		—		—		(3)		(2)
Total prior year reserve reestimates	$	408	$	(22)	$	51	$	37	$	459	$	15
Six months ended June 30,
Auto	$	426	$	(46)	$	(47)	$	(23)	$	379	$	(69)
Homeowners	44		(2)		78		(171)		122		(173)
Other personal lines	(16)		(3)		7		(14)		(9)		(17)
Commercial lines	111		31		—		2		111		33
Run-off Property-Liability	4		2		—		—		4		2
Protection Services	(3)		(2)		—		—		(3)		(2)
Total prior year reserve reestimates	$	566	$	(20)	$	38	$	(206)	$	604	$	(226)

(1)Favorable reserve reestimates are shown in parentheses.

(2)Unfavorable reserve reestimates for personal auto are primarily from physical damage and bodily injury coverages. Increases in physical damage reflect the ongoing inflationary factors and supply chain shortages impacting used vehicle and parts prices, labor rates and length of claim resolution, which contributed to the adverse development of claims reported in prior years but settled in 2022. Increases in injury coverages reflect the ongoing impacts of more severe auto accidents, increased medical inflation, higher consumption of medical treatment and the increased prevalence and severity of claims with attorney representation. Unfavorable reserve reestimates for commercial auto during the second quarter are primarily from shared economy business written in states which Allstate has exited.

(3)Included approximately $50 million and $200 million of estimated recoveries related to Nationwide Aggregate Reinsurance Program cover for aggregate catastrophe losses occurring between April 1, 2020 and December 31, 2020, for the three and six months ended 2021, respectively, which primarily impacted homeowners reestimates.

(4)Included approximately $110 million favorable subrogation settlements arising from the Woolsey wildfire, which primarily impacted homeowners reestimates, for the six months ended 2021.