Reportable Segments

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Reportable Segments

Note 4 Reportable Segments

The Company’s chief operating decision maker reviews financial performance and makes decisions about the allocation of resources for the five reportable segments. These segments are described below and align with the Company’s key product and service offerings.

Allstate Protection principally offers private passenger auto and homeowners insurance in the United States and Canada, with earned premiums accounting for 84.8% of Allstate’s 2023 consolidated revenues. Allstate Protection primarily operates in the U.S. (all 50 states and the District of Columbia (“D.C.”)) and Canada. For 2023, the top geographic locations for statutory direct premiums for the Allstate Protection segment were Texas, California, New York and Florida. No other jurisdiction accounted for more than 5% of statutory direct premiums for Allstate Protection. Revenues from external customers generated outside

the United States were $2.06 billion, $1.94 billion and $1.86 billion in 2023, 2022 and 2021, respectively.

Run-off Property-Liability includes results from property and casualty insurance coverage that primarily relates to policies written during the 1960s through the mid-1980s. Our exposure to asbestos, environmental and other run-off lines claims arises principally from direct excess commercial insurance, assumed reinsurance coverage, direct primary commercial insurance and other businesses in run-off.

Protection Services comprise Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside, Arity and Allstate Identity Protection. Protection Services offer consumer product protection plans, protection and insurance products (including vehicle service contracts, guaranteed asset protection, road hazard tire and wheel and paintless dent repair protection), roadside assistance, device and mobile data collection

services and analytic solutions using automotive telematics information, identity theft protection and remediation services. Protection Services primarily operates in the U.S. and Canada, with Allstate Protection Plans also offering services in Europe, Australia and Asia. Revenues from external customers generated outside the United States were $346 million, $258 million and $232 million in 2023, 2022 and 2021, respectively and relate to consumer product protection plans sold primarily in the European Union and Australia.

Allstate Health and Benefits offers employer voluntary benefits, group health and individual health products, including life, accident, critical illness, hospital indemnity, short-term disability and other health products. Allstate Health and Benefits primarily operates in the U.S. (all 50 states and D.C.) and Canada. For 2023, the top geographic locations for statutory direct accident, health and life insurance premiums were Florida, Texas, and Georgia. No other jurisdiction accounted for more than 5% of statutory direct accident, health and life insurance premiums. Revenues from external customers generated outside the United States relate to voluntary accident and health insurance sold in Canada and were not material.

Corporate and Other comprises debt service, other holding company activities and certain non-insurance operations, including expenses associated with strategic initiatives, such as the Avail peer-to-peer car-sharing initiative.

Allstate Protection and Run-off Property-Liability segments comprise Property-Liability. The Company does not allocate investment income, net gains and losses on investments and derivatives, or assets to the Allstate Protection and Run-off Property-Liability segments. Management reviews assets at the Property-Liability, Protection Services, Allstate Health and Benefits, and Corporate and Other levels for decision-making purposes.

The accounting policies of the reportable segments are the same as those described in Note 2. The effects of intersegment transactions are eliminated in the consolidated results. For segment results, services provided by Protection Services to Allstate Protection are not eliminated as management considers those transactions in assessing the results of the respective segments.

Measuring segment profit or loss

The measure of segment profit or loss used in evaluating performance is underwriting income for the Allstate Protection and Run-off Property-Liability and adjusted net income for the Protection Services, Allstate Health and Benefits and Corporate and Other segments.

Underwriting income is calculated as premiums earned and other revenue, less claims and claims expenses (“losses”), Shelter-in-Place Payback expense, amortization of DAC, operating costs and expenses, amortization or impairment of purchased intangibles and restructuring and related charges as determined using GAAP.

Adjusted net income is net income (loss) applicable to common shareholders, excluding:

• Net gains and losses on investments and derivatives

• Pension and other postretirement remeasurement gains and losses

• Business combination expenses and the amortization or impairment of purchased intangibles

• Income or loss from discontinued operations

• Gain or loss on disposition

• Adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years

• Income tax expense or benefit on reconciling items

A reconciliation of these measures to net income (loss) applicable to common shareholders is provided below.

Reportable segments financial performance
	For the years ended December 31,
($ in millions)	2023		2022		2021
Underwriting income (loss) by segment
Allstate Protection	$	(2,090)	$	(2,782)	$	1,785
Run-off Property-Liability	(94)		(129)		(120)
Total Property-Liability	(2,184)		(2,911)		1,665
Adjusted net income (loss) by segment, after-tax
Protection Services	106		169		179
Allstate Health and Benefits	242		245		223
Corporate and Other	(415)		(422)		(433)
Reconciling items
Property-Liability net investment income	2,218		2,190		3,118
Net gains (losses) on investments and derivatives	(300)		(1,072)		1,084
Pension and other postretirement remeasurement gains (losses)	(9)		(116)		644
Business combination expenses and amortization of purchased intangibles (1)	(94)		(113)		(157)
Business combination fair value adjustment	—		—		6
Gain (loss) on disposition (2)	4		89		—
Non-recurring costs (3)	(90)		—		—
Income tax benefit (expense) on reconciling items (4)	182		495		(1,270)
Total reconciling items	1,911		1,473		3,425
Income (loss) from discontinued operations	—		—		(3,612)
Income tax benefit from discontinued operations	—		—		19
Total from discontinued operations	$	—	$	—	$	(3,593)
Less: Net loss attributable to noncontrolling interest (5)	(24)		(52)		(34)
Net (loss) income applicable to common shareholders	$	(316)	$	(1,394)	$	1,500

(1)Excludes amortization or impairment of purchased intangibles in Property-Liability, which is included above in underwriting income.

(2)Includes $83 million related to the gain on sale of headquarters in the fourth quarter of 2022 reported as other revenue in Corporate and Other segment.

(3)Relates to settlement costs for non-recurring litigation that is outside of the ordinary course of business. See Note 15 for additional details.

(4)The tax computation of the reporting segments and income tax benefit (expense) on reconciling items to net income (loss) are computed discretely based on the tax law of the jurisdictions applicable to the reporting entities.

(5)Reflects net loss attributable to noncontrolling interest in Property-Liability.

Reportable segments revenue information
	For the years ended December 31,
($ in millions)	2023		2022		2021
Property-Liability
Insurance premiums
Auto	$	32,940	$	29,715	$	27,623
Homeowners	11,739		10,418		9,552
Other personal lines	2,387		2,159		2,077
Commercial lines	811		1,123		827
Other business lines	550		494		375
Allstate Protection	48,427		43,909		40,454
Run-off Property-Liability	—		—		—
Total Property-Liability insurance premiums	48,427		43,909		40,454
Other revenue	1,545		1,416		1,437
Net investment income	2,218		2,190		3,118
Net gains (losses) on investments and derivatives	(292)		(877)		1,021
Total Property-Liability	51,898		46,638		46,030
Protection Services
Protection Plans	1,540		1,307		1,132
Roadside assistance	195		202		192
Protection and insurance products	508		486		440
Intersegment premiums and service fees (1)	138		149		175
Other revenue	319		347		354
Net investment income	73		48		43
Net gains (losses) on investments and derivatives	—		(52)		25
Total Protection Services	2,773		2,487		2,361
Allstate Health and Benefits
Employer voluntary benefits	1,001		1,033		1,040
Group health	440		385		350
Individual health	405		414		444
Other revenue	447		402		359
Net investment income	82		69		74
Net gains (losses) on investments and derivatives	3		(44)		7
Total Allstate Health and Benefits	2,378		2,259		2,274
Corporate and Other
Other revenue	89		179		22
Net investment income	105		96		58
Net gains (losses) on investments and derivatives	(11)		(99)		31
Total Corporate and Other	183		176		111
Intersegment eliminations (1)	(138)		(149)		(175)
Consolidated revenues	$	57,094	$	51,411	$	50,601

(1)Intersegment insurance premiums and service fees are primarily related to Arity and Allstate Roadside and are eliminated in the consolidated financial statements.

Additional significant financial performance data
	For the years ended December 31,
($ in millions)	2023		2022		2021
Amortization of DAC
Property-Liability	$	6,070	$	5,570	$	5,313
Protection Services	1,058		928		795
Allstate Health and Benefits	150		136		128
Consolidated	$	7,278	$	6,634	$	6,236
Income tax expense (benefit)
Property-Liability	$	(136)	$	(427)	$	1,151
Protection Services	66		5		39
Allstate Health and Benefits	57		45		53
Corporate and Other	(122)		(111)		49
Consolidated	$	(135)	$	(488)	$	1,292

Interest expense is primarily incurred in the Corporate and Other segment. Capital expenditures for long-lived assets are generally made in Property-Liability as the Company does not allocate assets to the Allstate Protection and Run-off Property-Liability segments. A portion of these long-lived assets are used by entities included in the Protection Services, Allstate Health and Benefits and Corporate and Other segments and, accordingly, are charged to expenses in proportion to their use.

Reportable segment total assets, investments and deferred policy acquisition costs
	As of December 31,
($ in millions)	2023		2022
Assets
Property-Liability	$	88,568	$	82,744
Protection Services	7,292		6,922
Allstate Health and Benefits	4,032		3,752
Corporate and Other	3,470		4,571
Consolidated	$	103,362	$	97,989
Investments (1)
Property-Liability	$	59,540	$	54,011
Protection Services	2,180		1,917
Allstate Health and Benefits	2,182		1,872
Corporate and Other	2,775		4,029
Consolidated	$	66,677	$	61,829
Deferred policy acquisition costs
Property-Liability	$	2,378	$	2,146
Protection Services	3,022		2,768
Allstate Health and Benefits	540		528
Consolidated	$	5,940	$	5,442

(1)The balances reflect the elimination of related party investments between segments.