Business Segments

9 Months Ended

Sep. 30, 2013

Business Segments

Business Segments

15.  Business Segments

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

($ in millions)		Three months ended September 30,						Nine months ended September 30,
		2013			2012			2013			2012
Revenues
Property-Liability
Property-liability insurance premiums
Standard auto	$	4,483		$	4,310		$	13,277		$	12,875
Non-standard auto		162			177			497			544
Total auto		4,645			4,487			13,774			13,419
Homeowners		1,679			1,595			4,925			4,747
Other personal lines		648			614			1,905			1,826
Allstate Protection		6,972			6,696			20,604			19,992
Discontinued Lines and Coverages		--			1			--			1
Total property-liability insurance premiums		6,972			6,697			20,604			19,993
Net investment income		309			299			993			964
Realized capital gains and losses		(26	)		(16	)		391			192
Total Property-Liability		7,255			6,980			21,988			21,149
Allstate Financial
Life and annuity premiums and contract charges
Traditional life insurance		120			117			355			347
Immediate annuities with life contingencies		6			10			22			36
Accident and health insurance		180			164			539			486
Total life and annuity premiums		306			291			916			869
Interest-sensitive life insurance		272			267			813			790
Fixed annuities		6			5			13			16
Total contract charges		278			272			826			806
Total life and annuity premiums and contract charges		584			563			1,742			1,675
Net investment income		633			632			1,901			1,982
Realized capital gains and losses		(16	)		(56	)		60			(69	)
Total Allstate Financial		1,201			1,139			3,703			3,588
Corporate and Other
Service fees		3			1			6			3
Net investment income		8			9			23			31
Realized capital gains and losses		1			--			1			--
Total Corporate and Other before reclassification of service fees		12			10			30			34
Reclassification of service fees (1)		(3	)		(1	)		(6	)		(3	)
Total Corporate and Other		9			9			24			31
Consolidated revenues	$	8,465		$	8,128		$	25,715		$	24,768

(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 September 30,						Nine months ended September 30,
		2013			2012			2013			2012
Net income
Property-Liability
Underwriting income (loss)
Allstate Protection	$	831		$	701		$	1,566		$	1,365
Discontinued Lines and Coverages		(134	)		(42	)		(142	)		(49	)
Total underwriting income		697			659			1,424			1,316
Net investment income		309			299			993			964
Income tax expense on operations		(333	)		(308	)		(780	)		(717	)
Realized capital gains and losses, after-tax		(17	)		(11	)		253			125
Loss on disposition of operations, after-tax		--			--			(1	)		--
Property-Liability net income available to common shareholders		656			639			1,889			1,688
Allstate Financial
Life and annuity premiums and contract charges		584			563			1,742			1,675
Net investment income		633			632			1,901			1,982
Periodic settlements and accruals on non-hedge derivative instruments		2			15			17			45
Contract benefits and interest credited to contractholder funds		(800	)		(810	)		(2,380	)		(2,441	)
Operating costs and expenses and amortization of deferred policy acquisition costs		(241	)		(264	)		(670	)		(703	)
Restructuring and related charges		(4	)		--			(7	)		--
Income tax expense on operations		(47	)		(39	)		(175	)		(173	)
Operating income		127			97			428			385
Realized capital gains and losses, after-tax		(12	)		(36	)		37			(45	)
Valuation changes on embedded derivatives that are not hedged, after-tax		(10	)		97			(13	)		88
DAC and DSI accretion (amortization) related to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		1			(28	)		(2	)		(38	)
DAC and DSI unlocking related to realized capital gains and losses, after-tax		7			4			7			4
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		(1	)		(9	)		(11	)		(29	)
(Loss) gain on disposition of operations, after-tax		(472	)		6			(470	)		10
Allstate Financial net (loss) income available to common shareholders		(360	)		131			(24	)		375
Corporate and Other
Service fees (1)		3			1			6			3
Net investment income		8			9			23			31
Operating costs and expenses (1)		(162	)		(91	)		(366	)		(286	)
Income tax benefit on operations		58			34			130			101
Preferred stock dividends		(6	)		--			(6	)		--
Operating loss		(99	)		(47	)		(213	)		(151	)
Realized capital gains and losses, after-tax		1			--			1			--
Loss on extinguishment of debt, after-tax		(6	)		--			(318	)		--
Postretirement benefits curtailment gain, after-tax		118			--			118			--
Corporate and Other net income (loss) available to common shareholders		14			(47	)		(412	)		(151	)
Consolidated net income available to common shareholders	$	310		$	723		$	1,453		$	1,912

(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.