Reserve for Property and Casualty Insurance Claims and Claims Expense (Tables)

12 Months Ended

Dec. 31, 2023

Reserve for Property-Liability Insurance Claims and Claims Expense

Schedule of Rollforward of Reserve for Property and Casualty Insurance Claims and Claims Expense and Reconciliation of Total Claims and Claims Expense Incurred and Paid by Coverage and Prior Year Reserve Reestimates Included in Claims and Claims Expense

Rollforward of reserve for property and casualty insurance claims and claims expense
($ in millions)	2023		2022		2021
Balance as of January 1	$	37,541	$	33,060	$	27,610
Less recoverables (1)	(9,176)		(9,479)		(7,033)
Net balance as of January 1	28,365		23,581		20,577
National General acquisition as of January 4, 2021	—		—		1,797
SafeAuto acquisition as of October 1, 2021	—		—		134
Incurred claims and claims expense related to:
Current year	40,521		35,523		29,196
Prior years	549		1,741		122
Total incurred	41,070		37,264		29,318
Claims and claims expense paid related to:
Current year	(23,607)		(20,739)		(18,438)
Prior years	(14,366)		(11,741)		(9,807)
Total paid	(37,973)		(32,480)		(28,245)
Net balance as of December 31	31,462		28,365		23,581
Plus recoverables	8,396		9,176		9,479
Balance as of December 31	$	39,858	$	37,541	$	33,060

(1) Recoverables comprises reinsurance and indemnification recoverables. See Note 11 for further details.

Reconciliation of total claims and claims expense incurred and paid by coverage
	December 31, 2023
($ in millions)	Incurred		Paid
Allstate Protection
Auto insurance - liability coverage	$	15,752	$	(13,032)
Auto insurance - physical damage coverage	9,128		(9,290)
Homeowners insurance	9,330		(8,225)
Total auto and homeowners insurance	34,210		(30,547)
Other personal lines	1,827		(1,632)
Commercial lines	784		(951)
Other business lines	148		(206)
Protection Services	533		(522)
Run-off Property-Liability	78		(89)
Unallocated loss adjustment expenses (“ULAE”)	3,292		(3,269)
Claims incurred and paid from before 2019	243		(845)
Other (1)	(45)		88
Total	$	41,070	$	(37,973)

(1)Paid and incurred amounts primarily related to the effect of foreign currency translation adjustments.

Prior year reserve reestimates included in claims and claims expense (1)
	For the years ended December 31,
	Non-catastrophe losses						Catastrophe losses						Total
($ in millions)	2023		2022		2021		2023		2022		2021		2023		2022		2021
Auto	$	294	$	1,249	$	178	$	(50)	$	(64)	$	(29)	$	244	$	1,185	$	149
Homeowners	66		123		31		36		77		(166)		102		200		(135)
Other personal lines	37		(34)		(96)		(18)		2		(11)		19		(32)		(107)
Commercial lines	76		273		116		8		(1)		3		84		272		119
Other business lines	12		(10)		(19)		—		4		1		12		(6)		(18)
Run-off Property-Liability (2)	89		125		116		—		—		—		89		125		116
Protection Services	(1)		(3)		(2)		—		—		—		(1)		(3)		(2)
Total prior year reserve reestimates	$	573	$	1,723	$	324	$	(24)	$	18	$	(202)	$	549	$	1,741	$	122

(1)Favorable reserve reestimates are shown in parentheses.

(2)The Company’s 2023, 2022 and 2021 annual reserve review, using established industry and actuarial best practices, resulted in unfavorable reestimates of $80 million, $118 million and $111 million, respectively.

Schedule of Incurred Claims, Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Recoverables

The information about incurred and paid claims development for the 2019 to 2023 years, and the average annual percentage payout of incurred claims by age as of December 31, 2023, is presented as required supplementary information.

Auto insurance – liability coverage

($ in millions, except number of reported claims)	Incurred claims and allocated claim adjustment expenses, net of recoverables												IBNR reserves plus expected development on reported claims		Cumulative number of reported claims
	For the years ended December 31,										Prior year reserve reestimates		As of December 31, 2023
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2019		2020		2021		2022		2023
2019	$	10,377	$	10,307	$	10,557	$	10,729	$	10,812	$	83	$	642	2,569,785
2020	—		8,651		8,631		8,871		8,904		33		997		1,898,342
2021	—		—		10,365		10,851		11,180		329		2,057		2,229,946
2022	—		—		—		13,321		13,263		(58)		4,202		2,401,908
2023	—		—		—		—		15,365				10,258		2,283,467
							Total		$	59,524	$	387
Reconciliation to total prior year reserve reestimates recognized by line
Prior year reserve reestimates for pre-2019 accident years											229
Prior year reserve reestimates for ULAE											6
Other											—
Total prior year reserve reestimates											$	622
	Cumulative paid claims and allocated claims adjustment expenses, net of recoverables
	For the years ended December 31,
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2019		2020		2021		2022		2023
2019	$	3,936	$	6,995	$	8,530	$	9,519	$	10,170
2020	—		3,111		5,796		7,089		7,907
2021	—		—		3,589		7,304		9,123
2022	—		—		—		4,424		9,061
2023	—		—		—		—		5,107
							Total		$	41,368
All outstanding liabilities before 2019, net of recoverables									1,368
Liabilities for claims and claim adjustment expenses, net of recoverables									$	19,524

Auto insurance – physical damage coverage

($ in millions, except number of reported claims)	Incurred claims and allocated claim adjustment expenses, net of recoverables												IBNR reserves plus expected development on reported claims		Cumulative number of reported claims
	For the years ended December 31,										Prior year reserve reestimates		As of December 31, 2023
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2019		2020		2021		2022		2023
2019	$	6,241	$	6,162	$	6,121	$	6,120	$	6,113	$	(7)	$	(11)	4,864,602
2020	—		5,484		5,393		5,369		5,359		(10)		(11)		3,989,262
2021	—		—		7,269		7,326		7,269		(57)		(25)		4,567,859
2022	—		—		—		9,286		9,004		(282)		(79)		4,904,706
2023	—		—		—		—		9,484				970		4,591,024
							Total		$	37,229	$	(356)
Reconciliation to total prior year reserve reestimates recognized by line
Prior year reserve reestimates for pre-2019 accident years											(5)
Prior year reserve reestimates for ULAE											(20)
Other											3
Total prior year reserve reestimates											$	(378)
	Cumulative paid claims and allocated claims adjustment expenses, net of recoverables
	For the years ended December 31,
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2019		2020		2021		2022		2023
2019	$	5,936	$	6,132	$	6,126	$	6,123	$	6,124
2020	—		5,119		5,405		5,378		5,370
2021	—		—		6,847		7,351		7,294
2022	—		—		—		8,243		9,083
2023	—		—		—		—		8,514
							Total		$	36,385
All outstanding liabilities before 2019, net of recoverables									—
Liabilities for claims and claim adjustment expenses, net of recoverables									$	844

Homeowners insurance

($ in millions, except number of reported claims)	Incurred claims and allocated claim adjustment expenses, net of recoverables												IBNR reserves plus expected development on reported claims		Cumulative number of reported claims
	For the years ended December 31,										Prior year reserve reestimates		As of December 31, 2023
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2019		2020		2021		2022		2023
2019	$	4,694	$	4,762	$	4,769	$	4,781	$	4,790	$	9	$	38	847,160
2020	—		5,626		5,680		5,773		5,824		51		83		977,647
2021	—		—		6,282		6,408		6,468		60		198		989,192
2022	—		—		—		6,537		6,489		(48)		567		784,867
2023	—		—		—		—		9,258				3,469		919,333
							Total		$	32,829	$	72
Reconciliation to total prior year reserve reestimates recognized by line
Prior year reserve reestimates for pre-2019 accident years											29
Prior year reserve reestimates for ULAE											(17)
Other											18
Total prior year reserve reestimates											$	102
	Cumulative paid claims and allocated claims adjustment expenses, net of recoverables
	For the years ended December 31,
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2019		2020		2021		2022		2023
2019	$	3,414	$	4,432	$	4,621	$	4,699	$	4,752
2020	—		4,162		5,423		5,649		5,741
2021	—		—		4,449		6,035		6,270
2022	—		—		—		3,866		5,922
2023	—		—		—		—		5,789
							Total		$	28,474
All outstanding liabilities before 2019, net of recoverables									95
Liabilities for claims and claim adjustment expenses, net of recoverables									$	4,450

The information about incurred and paid claims development for the 2019 to 2023 years, and the average annual percentage payout of incurred claims by age as of December 31, 2023, is presented as required supplementary information.

Group and individual accident and health

($ in millions, except number of reported claims)	Incurred claims and allocated claim adjustment expenses, net of recoverables										IBNR reserves plus expected development on reported claims		Cumulative number of reported claims
	For the years ended December 31,										As of December 31, 2023
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2019		2020		2021		2022		2023
2019	$	257	$	239	$	242	$	242	$	242	$	—	313,017
2020	—		297		293		294		291		1		415,364
2021	—		—		424		420		415		2		677,649
2022	—		—		—		437		402		8		587,462
2023	—		—		—		—		476		164		413,651
							Total		$	1,826
	Cumulative paid claims and allocated claims adjustment expenses, net of recoverables
	For the years ended December 31,
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident year	2019		2020		2021		2022		2023
2019	$	158	$	234	$	242	$	242	$	242
2020	—		184		284		290		290
2021	—				272		408		414
2022	—		—		—		275		393
2023	—		—		—		—		312
							Total		$	1,651
All outstanding liabilities before 2019, net of recoverables									—
Liabilities for claims and claim adjustment expenses, net of recoverables									$	175

Schedule of Average Annual Percentage Payout of Incurred Claims by Age, Net of Recoverables

Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2023
	1 year		2 years		3 years		4 years		5 years
Auto insurance – liability coverage	36.6	%	29.2	%	13.6	%	8.6	%	5.6	%

Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2023
	1 year		2 years		3 years		4 years		5 years
Auto insurance – physical damage coverage	95.0	%	5.0	%	(0.4)	%	(0.1)	%	—	%

Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2023
	1 year		2 years		3 years		4 years		5 years
Homeowners insurance	70.8	%	22.5	%	2.8	%	0.8	%	0.9	%

Average annual percentage payout of incurred claims by age, net of recoverables, as of December 31, 2023
	1 year		2 years		3 years		4 years		5 years
Group and individual accident and health	64.2	%	33.1	%	2.0	%	0.5	%	0.2	%

Schedule of Reconciliation of the Net Incurred and Paid Claims Development to Reserve for Property and Casualty Insurance Claims and Claims Expense

Reconciliation of the net incurred and paid claims development tables above to the reserve for property and casualty insurance claims and claims expense
($ in millions)	As of December 31, 2023
Net outstanding liabilities
Allstate Protection
Auto insurance - liability coverage	$	19,524
Auto insurance - physical damage coverage	844
Homeowners insurance	4,450
Other personal lines	1,788
Commercial lines	1,745
Other business lines	17
Protection Services	46
Run-off Property-Liability (1)	1,361
ULAE	1,679
Other (2)	8
Net reserve for property and casualty insurance claims and claims expense	31,462
Recoverables
Allstate Protection
Auto insurance - liability coverage	6,880
Auto insurance - physical damage coverage	22
Homeowners insurance	343
Other personal lines	243
Commercial lines	326
Other business lines	1
Protection Services	14
Run-off Property-Liability	497
ULAE	70
Total recoverables	8,396
Gross reserve for property and casualty insurance claims and claims expense	$	39,858

(1)Run-off Property-Liability includes business in run-off with most of the claims related to accident years more than 40 years ago. IBNR reserves represent $762 million of the total reserves as of December 31, 2023.

(2)Primarily related to the unamortized fair value adjustment related to the acquisition of National General.

Reconciliation of the net incurred and paid claims development tables above to the reserve for future policy benefits
($ in millions)	As of December 31, 2023
Net outstanding liabilities
Group and individual accident and health short-duration contracts	$	175
Long-duration accident and health insurance	684
Long-duration traditional life insurance	330
Other contracts (1)	29
ULAE	9
Net reserve for future policy benefits	1,227
Recoverables
Group and individual accident and health short-duration contracts	37
Other accident and health short-duration contracts	—
Insurance lines other than short-duration	83
ULAE	—
Gross reserve for future policy benefits	$	1,347

(1)Other includes short-duration contracts related to employer voluntary benefits and other contracts.