Acquisitions and Dispositions (Table)

9 Months Ended

Sep. 30, 2022

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	$	4,962
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	734
Goodwill (2)	1,038
Total assets	11,401
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	162
Other liabilities	776
Total liabilities	$	7,090

(1)The amounts reflect allocation of assets acquired and liabilities assumed.

(2)$675 million, $20 million and $343 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, 2022, the Company had principal balance remaining of $350 million 6.750% Senior Notes due in 2024, with a fair value adjustment of $31 million.

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		2021
Revenues
Life premiums and contract charges	$	331	$	1,007
Net investment income	427		1,251
Net gains (losses) on investments and derivatives	4		193
Total revenues	762		2,451
Costs and expenses
Life contract benefits	411		1,207
Interest credited to contractholder funds	127		371
Amortization of DAC	27		84
Operating costs and expenses	45		151
Restructuring and related charges	7		30
Total costs and expenses	617		1,843
Amortization of deferred gain on reinsurance	1		5
Income from discontinued operations before income tax expense	146		613
Income tax expense	38		131
Income from discontinued operations, net of tax	108		482
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	$	(3,272)

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