Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of 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 March 31, 2023
($ in millions, except number of contracts)		Volume (1)
	Balance sheet location	Notional amount		Number of contracts	Fair value, net		Gross asset		Gross liability
Asset derivatives


Derivatives not designated as accounting hedging instruments
Interest rate contracts



Futures	Other assets	n/a		6,842	$	2	$	2	$	—
Equity and index contracts

Futures	Other assets	n/a		1,116	2		2		—



Foreign currency contracts
Foreign currency forwards	Other investments	$	453	n/a	(9)		5		(14)

Contingent consideration	Other assets	250		n/a	112		112		—
Credit default contracts
Credit default swaps – buying protection	Other investments	51		n/a	—		1		(1)






Total asset derivatives		$	754	7,958	$	107	$	122	$	(15)

Liability derivatives


Derivatives not designated as accounting hedging instruments
Interest rate contracts




Futures	Other liabilities & accrued expenses	n/a		12,394	$	(3)	$	—	$	(3)
Equity and index contracts

Futures	Other liabilities & accrued expenses	n/a		680	(2)		—		(2)




Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	$	176	n/a	3		4		(1)





Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	3		n/a	—		—		—



Total liability derivatives		179		13,074	(2)		$	4	$	(6)
Total derivatives		$	933	21,032	$	105

(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, 2022
($ in millions, except number of contracts)		Volume (1)
	Balance sheet location	Notional amount		Number of contracts	Fair value, net		Gross asset		Gross liability
Asset derivatives



Derivatives not designated as accounting hedging instruments
Interest rate contracts

Futures	Other assets	n/a		24,380	$	3	$	3	$	—
Equity and index contracts

Futures	Other assets	n/a		343	—		—		—



Foreign currency contracts
Foreign currency forwards	Other investments	$	354	n/a	1		14		(13)

Contingent consideration	Other assets	250		n/a	103		103		—
Credit default contracts
Credit default swaps – buying protection	Other investments	24		n/a	—		1		(1)





Total asset derivatives		$	628	24,723	$	107	$	121	$	(14)

Liability derivatives


Derivatives not designated as accounting hedging instruments
Interest rate contracts


Futures	Other liabilities & accrued expenses	n/a		1,624	$	—	$	—	$	—
Equity and index contracts

Futures	Other liabilities & accrued expenses	n/a		1,229	(1)		—		(1)



Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	$	283	n/a	—		7		(7)


Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	525		n/a	(3)		1		(4)


Total liability derivatives		808		2,853	(4)		$	8	$	(12)
Total derivatives		$	1,436	27,576	$	103

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 amount		Counter-party netting		Cash collateral (received) pledged		Net amount on balance sheet		Securities collateral (received) pledged		Net amount
March 31, 2023
Asset derivatives	$	10	$	(19)	$	19	$	10	$	—	$	10
Liability derivatives	(16)		19		(3)		—		—		—

December 31, 2022
Asset derivatives	$	23	$	(22)	$	—	$	1	$	—	$	1
Liability derivatives	(22)		22		(1)		(1)		—		(1)

(1)All OTC derivatives are subject to enforceable master netting agreements.

Schedule of 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)	Net gains (losses) on investments and derivatives		Operating costs and expenses		Total gain (loss) recognized in net income on derivatives
Three months ended March 31, 2023
Interest rate contracts	$	(35)	$	—	$	(35)
Equity and index contracts	4		8		12
Contingent consideration	—		9		9
Foreign currency contracts	(7)		—		(7)
Credit default contracts	(14)		—		(14)



Total	$	(52)	$	17	$	(35)












Three months ended March 31, 2022
Interest rate contracts	$	316	$	—	$	316
Equity and index contracts	3		(13)		(10)
Contingent consideration	—		12		12

Foreign currency contracts	7		—		7
Credit default contracts	(8)		—		(8)


Total	$	318	$	(1)	$	317

Schedule of OTC cash and securities collateral pledged


OTC cash and securities collateral pledged
($ in millions)	March 31, 2023
Pledged by the Company	$	19
Pledged to the Company (1)	3

(1)$1 million of collateral was posted under MNAs for contracts containing credit-risk-contingent provisions that are in a liability provision.

Schedule of counterparty credit exposure by counterparty credit rating


OTC derivatives counterparty credit exposure by counterparty credit rating
($ in millions)	March 31, 2023							December 31, 2022
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+	1	$	176	$	3	$	—	1	$	128	$	5	$	—
A	—	—		—		—		1	192		7		—



Total	1	$	176	$	3	$	—	2	$	320	$	12	$	—

(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.

Schedule of exchange traded and cleared margin deposits


Exchange traded and cleared margin deposits
($ in millions)	March 31, 2023
Pledged by the Company	$	146
Received by the Company	—

Schedule of derivative instruments with credit features in a liability position, including fair value of assets and collateral netted against the liability

The following table summarizes the fair value of derivative instruments with termination, cross-default or collateral credit-risk-contingent features that are in a liability position, as well as the fair value of assets and collateral that are netted against the liability in accordance with provisions within legally enforceable MNAs.


($ in millions)	March 31, 2023		December 31, 2022
Gross liability fair value of contracts containing credit-risk-contingent features	$	4	$	21
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(3)		(11)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	(1)		(10)
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$	—	$	—