Business Segments

6 Months Ended

Jun. 30, 2011

Business Segments

Business Segments

12.  Business Segments

Summarized revenue data for each of the Company’s business segments are as follows:

($ in millions)		Three months ended June 30,						Six months ended June 30,
		2011			2010			2011			2010
Revenues
Property-Liability
Property-liability insurance premiums
Standard auto	$	4,093		$	4,154		$	8,181		$	8,291
Non-standard auto		206			230			417			464
Total auto		4,299			4,384			8,598			8,755
Homeowners		1,548			1,512			3,087			3,028
Other personal lines		610			617			1,221			1,233
Allstate Protection		6,457			6,513			12,906			13,016
Discontinued Lines and Coverages		--			--			(1	)		--
Total property-liability insurance premiums		6,457			6,513			12,905			13,016
Net investment income		310			310			594			614
Realized capital gains and losses		(8	)		(106	)		49			(296	)
Total Property-Liability		6,759			6,717			13,548			13,334
Allstate Financial
Life and annuity premiums and contract charges
Traditional life insurance		109			104			217			210
Immediate annuities with life contingencies		15			31			58			58
Accident and health insurance		162			151			323			307
Total life and annuity premiums		286			286			598			575
Interest-sensitive life insurance		253			249			501			491
Fixed annuities		8			10			17			23
Total contract charges		261			259			518			514
Total life and annuity premiums and contract charges		547			545			1,116			1,089
Net investment income		694			723			1,378			1,454
Realized capital gains and losses		62			(353	)		101			(515	)
Total Allstate Financial		1,303			915			2,595			2,028
Corporate and Other
Service fees		2			3			4			6
Net investment income		16			16			30			31
Realized capital gains and losses		3			8			3			12
Total Corporate and Other before reclassification of service fees		21			27			37			49
Reclassification of service fees (1)		(2	)		(3	)		(4	)		(6	)
Total Corporate and Other		19			24			33			43
Consolidated revenues	$	8,081		$	7,656		$	16,176		$	15,405

(1) For presentation in the Condensed Consolidated Statements of Operations, service fees of the Corporate and Other segment are reclassified to operating costs and expenses.

Summarized financial performance data for each of the Company’s reportable segments are as follows:

($ in millions)		Three months ended June 30,						Six months ended June 30,
		2011			2010			2011			2010
Net income
Property-Liability
Underwriting (loss) income
Allstate Protection	$	(1,498	)	$	209		$	(1,165	)	$	284
Discontinued Lines and Coverages		(4	)		(2	)		(10	)		(6	)
Total underwriting (loss) income		(1,502	)		207			(1,175	)		278
Net investment income		310			310			594			614
Income tax benefit (expense) on operations		460			(149	)		279			(237	)
Realized capital gains and losses, after-tax		(6	)		(69	)		32			(192	)
Property-Liability net (loss) income		(738	)		299			(270	)		463
Allstate Financial
Life and annuity premiums and contract charges		547			545			1,116			1,089
Net investment income		694			723			1,378			1,454
Periodic settlements and accruals on non-hedge derivative financial instruments		19			11			36			28
Contract benefits and interest credited to contractholder funds		(834	)		(935	)		(1,713	)		(1,840	)
Operating costs and expenses and amortization of deferred policy acquisition costs		(213	)		(157	)		(435	)		(335	)
Restructuring and related charges		--			1			2			1
Income tax expense on operations		(72	)		(63	)		(127	)		(133	)
Operating income		141			125			257			264
Realized capital gains and losses, after-tax		40			(230	)		65			(335	)
Valuation changes on embedded derivatives that are not hedged, after-tax		(3	)		--			5			--
DAC and DSI (amortization) accretion related to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		(5	)		4			(31	)		2
DAC and DSI unlocking related to realized capital gains and losses, after-tax		--			--			1			(18	)
Reclassification of periodic settlements and accruals on non-hedge financial instruments, after-tax		(11	)		(7	)		(23	)		(18	)
Gain (loss) on disposition of operations, after-tax		4			1			(11	)		2
Allstate Financial net income (loss)		166			(107	)		263			(103	)
Corporate and Other
Service fees (1)		2			3			4			6
Net investment income		16			16			30			31
Operating costs and expenses (1)		(100	)		(104	)		(193	)		(204	)
Income tax benefit on operations		32			33			63			65
Operating loss		(50	)		(52	)		(96	)		(102	)
Realized capital gains and losses, after-tax		2			5			2			7
Corporate and Other net loss		(48	)		(47	)		(94	)		(95	)
Consolidated net (loss) income	$	(620	)	$	145		$	(101	)	$	265

(1) For presentation in the Condensed Consolidated Statements of Operations, service fees of the Corporate and Other segment are reclassified to operating costs and expenses.