Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Schedule of Unearned Premiums

The portion of premiums written applicable to the unexpired terms of the policies is recorded as unearned premiums.

Unearned premiums
	December 31,
($ in millions)	2023		2022
Allstate Protection	$	19,542	$	17,538
Protection Services	5,150		4,745
Total	$	24,692	$	22,283

Schedule of Rollforward of Credit Loss Allowance for Premium Installment Receivables and Allowance for Credit Loss

Rollforward of credit loss allowance for premium installment receivables
	For the years ended December 31,
($ in millions)	2023		2022
Beginning balance	$	(132)	$	(107)
Increase in the provision for credit losses	(348)		(313)
Write-off of uncollectible premium installment receivable amounts	342		288
Ending balance	$	(138)	$	(132)

Allowance for credit losses
	As of December 31,
($ in millions)	2023		2022
Fixed income securities	$	36	$	13
Mortgage loans	11		7
Bank loans	22		57
Investments	69		77
Premium installment receivables	138		132
Reinsurance recoverables	65		65
Other assets	18		19
Assets	290		293
Commitments to fund mortgage loans and bank loans	1		—
Liabilities	1		—
Total	$	291	$	293

Rollforward of credit loss allowance for fixed income securities
	For the years ended December 31,
($ in millions)	2023		2022		2021
Beginning balance	$	(13)	$	(6)	$	(2)
Credit losses on securities for which credit losses not previously reported	(11)		(1)		(5)
Net (increases) decreases related to credit losses previously reported	(11)		(6)		1
(Increase) decrease of allowance related to sales and other	(1)		—		—
Write-offs	—		—		—
Ending balance	$	(36)	$	(13)	$	(6)
Components of credit loss allowance as of December 31
Corporate bonds	$	(35)	$	(11)	$	(6)
ABS	(1)		(2)		—
Total	$	(36)	$	(13)	$	(6)

Rollforward of credit loss allowance for mortgage loans
	For the years ended December 31,
($ in millions)	2023		2022		2021
Beginning balance	$	(7)	$	(6)	$	(67)
Net (increases) decreases related to credit losses	(4)		(1)		40
Reduction of allowance related to sales	—		—		21
Write-offs	—		—		—
Ending balance	$	(11)	$	(7)	$	(6)

Rollforward of credit loss allowance for bank loans
	For the years ended December 31,
($ in millions)	2023		2022		2021
Beginning balance	$	(57)	$	(61)	$	(67)
Net increases related to credit losses	(18)		(26)		(15)
Reduction of allowance related to sales	50		30		21
Write-offs	3		—		—
Ending balance	$	(22)	$	(57)	$	(61)

Schedule of Goodwill by Reporting Unit

The Company’s goodwill reporting units are equivalent to its reportable segments to which goodwill has been assigned: Allstate Protection, Protection Services, and Allstate Health and Benefits.

Goodwill by reporting unit
	December 31,
($ in millions)	2023		2022
Allstate Protection	$	1,563	$	1,563
Protection Services	1,494		1,494
Allstate Health and Benefits	445		445
Total	$	3,502	$	3,502

Schedule of Intangible Assets by Type

Intangible assets are carried at cost less accumulated amortization.

Intangible assets by type
	December 31,
($ in millions)	2023		2022
Distribution and customer relationships	$	515	$	697
Trade names and licenses	159		179
Technology and other	292		301
Total	$	966	$	1,177

Schedule of Amortization Expense of Intangible Assets

Amortization expense of intangible assets for the next five years and thereafter
($ in millions)
2024	$	271
2025	215
2026	147
2027	98
2028	54
Thereafter	42
Total amortization	$	827

Schedule of Other Information Related to Operating Leases

Other information related to operating leases
	December 31,
	2023		2022
Weighted average remaining lease term (years)	3		4
Weighted average discount rate	3.48	%	3.08	%

Schedule of Maturity of Lease Liabilities

Maturity of lease liabilities
($ in millions)	Operating leases
2024	$	92
2025	77
2026	48
2027	30
2028	18
Thereafter	20
Total lease payments	$	285
Less: interest	(20)
Present value of lease liabilities	$	265

Schedule of Computation of Basic and Diluted Earnings Per Common Share

Computation of basic and diluted earnings per common share
	For the years ended December 31,
($ in millions, except per share data)	2023		2022		2021
Numerator:
Net (loss) income from continuing operations	$	(213)	$	(1,342)	$	5,174
Less: Net loss attributable to noncontrolling interest	(25)		(53)		(33)
Net (loss) income from continuing operations attributable to Allstate	(188)		(1,289)		5,207
Less: Preferred stock dividends	128		105		114
Net (loss) income from continuing operations applicable to common shareholders	(316)		(1,394)		5,093
Income (loss) from discontinued operations, net of tax	—		—		(3,593)
Net (loss) income applicable to common shareholders	$	(316)	$	(1,394)	$	1,500
Denominator:
Weighted average common shares outstanding	262.5		271.2		294.8
Effect of dilutive potential common shares (1):
Stock options	—		—		2.7
Restricted stock units (non-participating) and performance stock awards	—		—		1.6
Weighted average common and dilutive potential common shares outstanding	262.5		271.2		299.1
Earnings per share applicable to common shareholders
Basic
Continuing operations	$	(1.20)	$	(5.14)	$	17.28
Discontinued operations	—		—		(12.19)
Total	$	(1.20)	$	(5.14)	$	5.09
Diluted (1)
Continuing operations	$	(1.20)	$	(5.14)	$	17.03
Discontinued operations	—		—		(12.02)
Total	$	(1.20)	$	(5.14)	$	5.01
Anti-dilutive options excluded from diluted earnings per common share	3.0		1.7		1.3
Weighted average dilutive potential common shares excluded due to net loss applicable to common shareholders (1)	2.2		3.1		—

(1)As a result of the net loss reported for the years ended December 31, 2023 and 2022, weighted average shares for basic earnings per share is also used for calculating diluted earnings per share because all dilutive potential common shares are anti-dilutive and are therefore excluded from the calculation.

Schedule of After-Tax Cumulative Effect of Change in Accounting Principle on Transition Date

After-tax cumulative effect of change in accounting principle on transition date
($ in millions)	January 1, 2021
Decrease in retained income	$	21
Decrease in AOCI	277
Total decrease in equity	$	298

Consolidated Statements of Operations
($ in millions, except per share data)	As reported		Impact of change		As adjusted
	Year ended December 31, 2022
Revenues
Accident and health insurance premiums and contract charges	$	1,833	$	(1)	$	1,832
Total revenues	51,412		(1)		51,411
Costs and expenses
Accident, health and other policy benefits	1,061		(19)		$	1,042
Amortization of deferred policy acquisition costs	6,644		(10)		$	6,634
Total costs and expenses	53,270		(29)		53,241
Loss from operations before income tax expense	(1,858)		28		(1,830)
Income tax benefit	(494)		6		(488)
Net loss	(1,364)		22		(1,342)
Net loss attributable to Allstate	(1,311)		22		(1,289)
Net loss applicable to common shareholders	$	(1,416)	$	22	$	(1,394)
Earnings per common share:
Net loss applicable to common shareholders per common share - Basic	$	(5.22)	$	0.08	$	(5.14)
Net loss applicable to common shareholders per common share - Diluted	(5.22)		0.08		(5.14)
	Year ended December 31, 2021
Revenues
Accident and health insurance premiums and contract charges	$	1,821	$	13	$	1,834
Total revenues	50,588		13		50,601
Costs and expenses
Accident, health and other policy benefits	1,049		11		1,060
Amortization of deferred policy acquisition costs	6,252		(16)		6,236
Total costs and expenses	44,140		(5)		44,135
Income from operations before income tax expense	6,448		18		6,466
Income tax benefit	1,289		3		1,292
Net income from continuing operations	5,159		15		5,174
Net income	1,566		15		1,581
Net income attributable to Allstate	1,599		15		1,614
Net income applicable to common shareholders	$	1,485	$	15	$	1,500
Earnings per common share:
Net income from continuing operations applicable to common shareholders per common share - Basic	$	17.23	$	0.05	$	17.28
Net income applicable to common shareholders per common share - Basic	5.04		0.05		5.09
Net income from continuing operations applicable to common shareholders per common share - Diluted	16.98		0.05		17.03
Net income applicable to common shareholders per common share - Diluted	4.96		0.05		5.01

Consolidated Statements of Comprehensive Income (Loss)
($ in millions)	As reported		Impact of change		As adjusted
	Year ended December 31, 2022
Net loss	$	(1,364)	$	22	$	(1,342)
Other comprehensive loss, after-tax
Changes in:
Unrealized net capital gains and losses	(2,851)		(2)		(2,853)
Discount rate for reserve for future policy benefits	—		228		228
Other comprehensive loss, after-tax	(3,044)		226		(2,818)
Comprehensive loss	(4,408)		248		(4,160)
Comprehensive loss attributable to Allstate	$	(4,335)	$	248	$	(4,087)
	Year ended December 31, 2021
Net income	$	1,566	$	15	$	1,581
Other comprehensive loss, after-tax
Changes in:
Unrealized net capital gains and losses	(2,582)		(1)		(2,583)
Discount rate for reserve for future policy benefits	—		49		49
Other comprehensive loss, after-tax	(2,649)		48		(2,601)
Comprehensive loss	(1,083)		63		(1,020)
Comprehensive loss attributable to Allstate	$	(1,047)	$	63	$	(984)

Consolidated Statements of Financial Position
($ in millions)	As reported		Impact of change		As adjusted
	December 31, 2022
Assets
Deferred policy acquisition costs	$	5,418	$	24	$	5,442
Reinsurance and indemnification recoverables, net	9,606		13		9,619
Deferred income taxes	386		(4)		382
Other assets, net	5,905		(1)		5,904
Total assets	97,957		32		97,989
Liabilities
Reserve for future policy benefits	1,273		49		1,322
Contractholder funds	897		(18)		879
Unearned premiums	22,311		(12)		22,299
Total liabilities	80,607		19		80,626
Equity
Retained income	50,954		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’ equity	17,475		13		17,488
Total equity	17,350		13		17,363
Total liabilities and equity	$	97,957	$	32	$	97,989

Consolidated Statements of Shareholders’ Equity
($ in millions)	As reported		Impact of change		As adjusted
	Year ended December 31, 2022
Retained income
Balance, beginning of period	$	53,294	$	(6)	$	53,288
Net loss	(1,311)		22		(1,289)
Balance, end of period	50,954		16		50,970
Accumulated other comprehensive income (loss)
Balance, beginning of period	655		(229)		426
Change in unrealized net capital gains and losses	(2,851)		(2)		(2,853)
Change in discount rate for reserve for future policy benefits	—		228		228
Balance, end of period	(2,389)		(3)		(2,392)
Total Allstate shareholders’ equity	17,475		13		17,488
Total equity	$	17,350	$	13	$	17,363
	Year ended December 31, 2021
Retained income
Balance, beginning of period	$	52,767	$	—	$	52,767
Cumulative effect of change in accounting principle	—		(21)		(21)
Net income	1,599		15		1,614
Balance, end of period	53,294		(6)		53,288
Accumulated other comprehensive income (loss)
Balance, beginning of period	3,304		—		3,304
Cumulative effect of change in accounting principle	—		(277)		(277)
Change in unrealized net capital gains and losses	(2,582)		(1)		(2,583)
Change in discount rate for reserve for future policy benefits	—		49		49
Balance, end of period	655		(229)		426
Total Allstate shareholders’ equity	25,179		(235)		24,944
Total equity	$	25,127	$	(235)	$	24,892

Consolidated Statements of Cash Flows
($ in millions)	As reported		Impact of change		As adjusted
	Year ended December 31, 2022
Cash flows from operating activities
Net loss	$	(1,364)	$	22	$	(1,342)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Changes in:
Policy benefits and other insurance reserves	4,503		(58)		4,445
Unearned premiums	2,541		(2)		2,539
Deferred policy acquisition costs	(702)		(11)		(713)
Reinsurance recoverables, net	408		43		451
Income taxes	(721)		6		(715)
Net cash provided by operating activities	$	5,121	$	—	$	5,121

Consolidated Statements of Cash Flows
($ in millions)	As reported		Impact of change		As adjusted
	Year ended December 31, 2021
Cash flows from operating activities
Net income	$	1,566	$	15	$	1,581
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Changes in:
Policy benefits and other insurance reserves	2,432		12		2,444
Unearned premiums	1,618		(10)		1,608
Deferred policy acquisition costs	(608)		(16)		(624)
Reinsurance recoverables, net	(1,565)		(5)		(1,570)
Income taxes	349		4		353
Net cash provided by operating activities	$	5,116	$	—	$	5,116

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 health		Traditional life		Total
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 adjustments	309		153		462
Post-adoption 1/1/2021 balance	1,037		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.

Schedule of Impact of Adoption for DAC

Impact of adoption for DAC
( $ in millions)	Accident and health		Traditional life		Interest- sensitive life		Total
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
	Accident and health insurance long-duration contracts						Accident and health insurance short-duration contracts		Property and casualty		Total
($ in millions)	Accident and health		Traditional life		Interest-sensitive life
Year ended December 31, 2023
Beginning balance	$	322	$	79	$	101	$	26	$	4,914	$	5,442
Acquisition costs deferred	100		33		16		13		7,614		7,776
Amortization charged to income	(73)		(21)		(14)		(10)		(7,128)		(7,246)
Experience adjustment	(28)		(1)		(3)		—		—		(32)
Ending balance	$	321	$	90	$	100	$	29	$	5,400	$	5,940
Year ended December 31, 2022
Beginning balance	$	339	$	47	$	90	$	17	$	4,245	$	4,738
Acquisition costs deferred	88		40		27		16		7,167		7,338
Amortization charged to income	(77)		(7)		(15)		(7)		(6,498)		(6,604)
Experience adjustment	(28)		(1)		(1)		—		—		(30)
Ending balance	$	322	$	79	$	101	$	26	$	4,914	$	5,442
Year ended December 31, 2021
Beginning balance	$	333	$	32	$	97	$	10	$	3,304	$	3,776
Acquisitions (1)	3		—		—		—		321		324
Acquisition costs deferred	93		26		14		13		6,728		6,874
Amortization charged to income	(64)		(10)		(17)		(6)		(6,108)		(6,205)
Experience adjustment	(26)		(1)		(4)		—		—		(31)
Ending balance	$	339	$	47	$	90	$	17	$	4,245	$	4,738

(1)Represents value of business acquired from National General and SafeAuto.