Deferred Policy Acquisition and Sales Inducement Costs (Tables)

12 Months Ended

Dec. 31, 2011

Deferred Policy Acquisition and Sales Inducement Costs

Schedule of deferred policy acquisition costs

($ in millions)	2011
	Allstate Financial			Property- Liability			Total
Balance, beginning of year	$	3,392		$	1,377		$	4,769
Esurance acquisition present value of future profits		—			42			42
Acquisition costs deferred		433			3,633			4,066
Amortization charged to income		(593	)		(3,640	)		(4,233	)
Effect of unrealized gains and losses		(201	)		—			(201	)
Balance, end of year	$	3,031		$	1,412		$	4,443

	2010
	Allstate Financial			Property- Liability			Total
Balance, beginning of year	$	4,060		$	1,410		$	5,470
Acquisition costs deferred		483			3,645			4,128
Amortization charged to income		(356	)		(3,678	)		(4,034	)
Effect of unrealized gains and losses		(795	)		—			(795	)
Balance, end of year	$	3,392		$	1,377		$	4,769

	2009
	Allstate Financial			Property- Liability			Total
Balance, beginning of year	$	7,089		$	1,453		$	8,542
Impact of adoption of new other-than-temporary impairment accounting guidance before unrealized impact (1)		(176	)		—			(176	)
Impact of adoption of new other-than-temporary impairment accounting guidance effect of unrealized capital gains and losses (2)		176			—			176
Acquisition costs deferred		495			3,746			4,241
Amortization charged to income		(965	)		(3,789	)		(4,754	)
Effect of unrealized gains and losses		(2,559	)		—			(2,559	)
Balance, end of year	$	4,060		$	1,410		$	5,470

⁽¹⁾

The adoption of new other-than-temporary impairment accounting guidance on April 1, 2009 resulted in an adjustment to DAC to reverse previously recorded DAC accretion related to realized capital losses that were reclassified to other comprehensive income upon adoption.

⁽²⁾

The adoption of new other-than-temporary impairment accounting guidance resulted in an adjustment to DAC due to the change in unrealized capital gains and losses that occurred upon adoption on April 1, 2009 when previously recorded realized capital losses were reclassified to other comprehensive income. The adjustment was recorded as an increase of the DAC balance and unrealized capital gains and losses.

Schedule of DSI activity for Allstate Financial

($ in millions)	2011			2010			2009
Balance, beginning of year	$	86		$	195		$	453
Impact of adoption of new other-than-temporary impairment accounting guidance before unrealized impact (1)		—			—			(35	)
Impact of adoption of new other-than-temporary impairment accounting guidance effect of unrealized capital gains and losses (2)		—			—			35
Sales inducements deferred		7			14			28
Amortization charged to income		(23	)		(27	)		(129	)
Effect of unrealized gains and losses		(29	)		(96	)		(157	)
Balance, end of year	$	41		$	86		$	195

⁽¹⁾

The adoption of new other-than-temporary impairment accounting guidance on April 1, 2009 resulted in an adjustment to DSI to reverse previously recorded DSI accretion related to realized capital losses that were reclassified to other comprehensive income upon adoption.

⁽²⁾

The adoption of new other-than-temporary impairment accounting guidance resulted in an adjustment to DSI due to the change in unrealized capital gains and losses that occurred upon adoption on April 1, 2009 when previously recorded realized capital losses were reclassified to other comprehensive income. The adjustment was recorded as an increase of the DSI balance and unrealized capital gains and losses.