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General (Tables)
 9 Months Ended
Sep. 30, 2023
General [Abstract]  
Schedule of Impact of Adoption
After-tax cumulative effect of change in accounting principle on transition date
($ in millions)January 1, 2021
Decrease in retained income$21 
Decrease in accumulated other comprehensive income (“AOCI”)277 
Total decrease in equity$298 
Condensed Consolidated Statements of Operations
As
reported		Impact of changeAs
adjusted
($ in millions, except per share data)Three months ended September 30, 2022
Revenues
Accident and health insurance premiums and contract charges$463 $— $463 
Total revenues13,208 — 13,208 
Costs and expenses
Accident, health and other policy benefits263 (11)252 
Amortization of deferred policy acquisition costs1,682 1 1,683 
Total costs and expenses14,128 (10)14,118 
Loss from operations before income tax expense(920)10 (910)
Income tax benefit(237)1 (236)
Net loss(683)9 (674)
Net loss attributable to Allstate(668)9 (659)
Net loss applicable to common shareholders$(694)$9 $(685)
Earnings per common share:
Net loss applicable to common shareholders per common share - Basic$(2.58)$0.03 $(2.55)
Net loss applicable to common shareholders per common share - Diluted$(2.58)$0.03 $(2.55)
Nine months ended September 30, 2022
Revenues
Accident and health insurance premiums and contract charges$1,398 $(2)$1,396 
Total revenues37,765 (2)37,763 
Costs and expenses
Accident, health and other policy benefits801 (16)785 
Amortization of deferred policy acquisition costs4,913 (4)4,909 
Total costs and expenses39,203 (20)39,183 
Loss from operations before income tax expense(1,438)18 (1,420)
Income tax benefit(377)3 (374)
Net loss(1,061)15 (1,046)
Net loss attributable to Allstate(1,027)15 (1,012)
Net loss applicable to common shareholders$(1,106)$15 $(1,091)
Earnings per common share:
Net loss applicable to common shareholders per common share - Basic$(4.04)$0.05 $(3.99)
Net loss applicable to common shareholders per common share - Diluted$(4.04)$0.05 $(3.99)
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited)
As reportedImpact of changeAs adjusted
($ in millions)Three months ended September 30, 2022
Net loss$(683)$9 $(674)
Other comprehensive loss, after-tax
Changes in:
Unrealized net capital gains and losses(789)— (789)
Discount rate for reserve for future policy benefits
— 52 52 
Other comprehensive loss, after-tax
(885)52 (833)
Comprehensive loss(1,568)61 (1,507)
Comprehensive loss attributable to Allstate$(1,547)$61 $(1,486)
Nine months ended September 30, 2022
Net loss$(1,061)$15 $(1,046)
Other comprehensive loss, after-tax
Changes in:
Unrealized net capital gains and losses(3,525)(2)(3,527)
Discount rate for reserve for future policy benefits
— 232 232 
Other comprehensive loss, after-tax
(3,698)230 (3,468)
Comprehensive loss(4,759)245 (4,514)
Comprehensive loss attributable to Allstate$(4,699)$245 $(4,454)
Condensed Consolidated Statements of Financial Position (unaudited)
As
reported		Impact of changeAs
adjusted
($ in millions)December 31, 2022
Assets
Deferred policy acquisition costs$5,418 $24 $5,442 
Reinsurance and indemnification recoverables, net9,606 13 9,619 
Deferred income taxes386 (4)382 
Other assets, net5,905 (1)5,904 
Total assets97,957 32 97,989 
Liabilities
Reserve for future policy benefits1,273 49 1,322 
Contractholder funds897 (18)879 
Unearned premiums22,311 (12)22,299 
Total liabilities80,607 19 80,626 
Equity
Retained income50,954 16 50,970 
Accumulated other comprehensive income (loss):
Unrealized net capital gains and losses(2,253)(2)(2,255)
Discount rate for reserve for future policy benefits
— (1)(1)
Total AOCI(2,389)(3)(2,392)
Total Allstate shareholders’ equity17,475 13 17,488 
Total equity17,350 13 17,363 
Total liabilities and equity$97,957 $32 $97,989 
Condensed Consolidated Statements of Shareholders’ Equity (unaudited)
As
reported		Impact of changeAs
adjusted
($ in millions)Three months ended September 30, 2022
Retained income
Balance, beginning of period$52,412 $— $52,412 
Net loss(668)9 (659)
Balance, end of period51,490 9 51,499 
Accumulated other comprehensive income (loss)
Balance, beginning of period(2,158)(51)(2,209)
Change in unrealized net capital gains and losses(789)— (789)
Change in discount rate for reserve for future policy benefits
— 52 52 
Balance, end of period(3,043)1 (3,042)
Total Allstate shareholders’ equity17,673 10 17,683 
Total equity$17,561 $10 $17,571 
Nine months ended September 30, 2022
Retained income
Balance, beginning of period$53,294 $(6)$53,288 
Net loss(1,027)15 (1,012)
Balance, end of period51,490 9 51,499 
Accumulated other comprehensive income (loss)
Balance, beginning of period655 (229)426 
Change in unrealized net capital gains and losses(3,525)(2)(3,527)
Change in discount rate for reserve for future policy benefits
— 232 232 
Balance, end of period(3,043)1 (3,042)
Total Allstate shareholders’ equity17,673 10 17,683 
Total equity$17,561 $10 $17,571 
Condensed Consolidated Statements of Cash Flows (unaudited)
As
reported		Impact of changeAs
adjusted
($ in millions)Nine months ended September 30, 2022
Cash flows from operating activities
Net loss$(1,061)$15 $(1,046)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Changes in:
Policy benefits and other insurance reserves3,520 (56)3,464 
Unearned premiums2,256 (1)2,255 
Deferred policy acquisition costs(562)(5)(567)
Reinsurance recoverables, net56 43 99 
Income taxes(559)4 (555)
Other operating assets and liabilities(381)— (381)
Net cash provided by operating activities$4,151 $— $4,151 
Schedule of Impact of Adoption for Reserve for Future Policy Benefits The following tables summarize the balance of and changes in the reserve for future policy benefits and DAC on January 1, 2021 upon the adoption of the guidance.
Impact of adoption for reserve for future policy benefits
($ in millions)
Accident and healthTraditional lifeTotal
Pre-adoption 12/31/2020 balance (1)
$728 $311 $1,039 
Adjustments:
Effect of the remeasurement of the reserve at upper-medium grade fixed income-based rate (2)
232 153 385 
Adjustments for contracts with net premiums in excess of gross premiums (3)
77 — 77 
Total adjustments309 153 462 
Post-adoption 1/1/2021 balance1,037 464 1,501 
Less: reinsurance recoverables (4)
159 3 162 
Post-adoption 1/1/2021 balance, after reinsurance recoverables$878 $461 $1,339 
(1)Traditional life includes $11 million in reserves related to riders of traditional life insurance products reclassified from contractholder funds.
(2)Adjustment reflected with a corresponding decrease to AOCI.
(3)Adjustment reflected with a corresponding decrease to retained income.
(4)Represents post-adoption January 1, 2021 balance of reinsurance recoverables. Adjustments to reinsurance recoverables for accident and health products increased January 1, 2021 AOCI by $33 million due to the remeasurement of the reserve at upper-medium grade fixed income based rate and increased January 1, 2021 retained income by $51 million due to adjustments for contracts with net premiums in excess of gross premiums.
Rollforward of reserve for future policy benefits (1)
Nine months ended September 30,
Accident and
health		Traditional
life		Total
($ in millions)202320222023202220232022
Present value of expected net premiums
Beginning balance$1,464 $1,785 $238 $254 $1,702 $2,039 
Beginning balance at original discount rate1,549 1,604 246 215 1,795 1,819 
Effect of changes in cash flow assumptions(12)— 34 — 22 — 
Effect of actual variances from expected experience(4)(138)4 35 — (103)
Adjusted beginning balance1,533 1,466 284 250 1,817 1,716 
Issuances378 301 53 7 431 308 
Interest accrual48 36 8 5 56 41 
Net premiums collected(260)(254)(37)(34)(297)(288)
Ending balance at original discount rate1,699 1,549 308 228 2,007 1,777 
Effect of changes in discount rate assumptions(113)(96)(19)(8)(132)(104)
Ending balance1,586 1,453 289 220 1,875 1,673 
Present value of expected future policy benefits
Beginning balance2,229 2,796 524 673 2,753 3,469 
Beginning balance at original discount rate2,316 2,426 534 511 2,850 2,937 
Effect of changes in cash flow assumptions21 (44)30 — 51 (44)
Effect of actual variances from expected experience(24)(120)3 26 (21)(94)
Adjusted beginning balance2,313 2,262 567 537 2,880 2,799 
Issuances368 293 68 8 436 301 
Interest accrual75 62 18 15 93 77 
Benefit payments(297)(294)(30)(53)(327)(347)
Ending balance at original discount rate2,459 2,323 623 507 3,082 2,830 
Effect of changes in discount rate assumptions(126)(105)(38)(11)(164)(116)
Ending balance$2,333 $2,218 $585 $496 $2,918 $2,714 
Net reserve for future policy benefits (1)
$747 $765 $296 $276 $1,043 $1,041 
Less: reinsurance recoverables82 75 2 2 84 77 
Net reserve for future policy benefits, after reinsurance recoverables
$665 $690 $294 $274 $959 $964 
(1)Excludes $266 million and $277 million of reserves related to short-duration and other contracts as of September 30, 2023 and 2022, respectively.
Revenue and interest recognized in the condensed consolidated statements of operations
($ in millions)Nine months ended September 30,
20232022
Revenues (1)
Accident and health$600 $629 
Traditional life77 72 
Total$677 $701 
Interest expense (2)
Accident and health$27 $26 
Traditional life10 10 
Total$37 $36 
(1) Total revenues reflects gross premiums used in the calculation for reserve for future policy benefits. Revenues included in Accident and health insurance premiums and contract charges on the Condensed Consolidated Statements of Operations reflect premium revenue recognized for traditional life insurance and long-duration and short-duration accident and health insurance contracts.
(2) Total interest expense presented as part of Accident, health and other policy benefits on the Condensed Consolidated Statements of Operations.
The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for nonparticipating traditional and limited-payment contracts.
As of September 30,
20232022
($ in millions)UndiscountedDiscountedUndiscountedDiscounted
Accident and health
Expected future gross premiums$5,263 $3,600 $4,963 $3,533 
Expected future benefits and expenses3,503 2,333 3,253 2,218 
Traditional life
Expected future gross premiums813 553 624 422 
Expected future benefits and expenses1,153 585 932 496 
Key assumptions used in calculating the reserve for future policy benefits
As of September 30,
Accident and healthTraditional life
2023202220232022
Weighted-average duration (in years)4.33.714.813.4
Weighted-average interest rates
Interest accretion rate (discount rate at contract issuance)4.73 %4.69 %5.43 %5.60 %
Current discount rate (upper-medium grade fixed income yield)5.28 4.73 5.56 5.38 
Schedule of Impact of Adoption for DAC
Impact of adoption for DAC
($ in millions)
Accident and healthTraditional lifeInterest- sensitive lifeTotal
Pre-adoption 12/31/2020 balance$343 $32 $95 $470 
Adjustment for removal of impact of unrealized gains or losses (1)
— — 2 2 
Post-adoption 1/1/2021 balance$343 $32 $97 $472 
(1)Adjustment reflected with a corresponding increase to AOCI.
Deferred policy acquisition costs activity
($ in millions)Accident and healthTraditional
life		Interest-sensitive lifeTotal
Nine months ended September 30, 2023    
Accident and health insurance
Long-duration contracts
Beginning balance$322 $79 $101 $502 
Acquisition costs deferred73 24 12 109 
Amortization charged to income(54)(17)(11)(82)
Experience adjustment(22)(1)(2)(25)
Total$319 $85 $100 504 
Short-duration contracts27 
Property and casualty5,293 
Ending balance$5,824 
Nine months ended September 30, 2022    
Accident and health insurance
Long-duration contracts
Beginning balance$339 $47 $90 $476 
Acquisition costs deferred66 33 23 122 
Amortization charged to income(55)(7)(11)(73)
Experience adjustment(26)(1)(1)(28)
Total$324 $72 $101 497 
Short-duration contracts24 
Property and casualty4,770 
Ending balance$5,291