Reporting Segments

6 Months Ended

Jun. 30, 2014

Reporting Segments

Reporting Segments

14.  Reporting Segments

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

($ in millions)		Three months ended June 30,				Six months ended June 30,
		2014		2013		2014		2013
Revenues
Property-Liability
Property-liability insurance premiums
Auto	$	4,824	$	4,599	$	9,536	$	9,129
Homeowners		1,714		1,630		3,411		3,246
Other personal lines		414		405		826		809
Commercial lines		121		113		231		227
Other business lines		131		115		264		221
Allstate Protection		7,204		6,862		14,268		13,632
Discontinued Lines and Coverages		--		--		--		--
Total property-liability insurance premiums		7,204		6,862		14,268		13,632
Net investment income		351		343		663		684
Realized capital gains and losses		250		305		303		417
Total Property-Liability		7,805		7,510		15,234		14,733
Allstate Financial
Life and annuity premiums and contract charges
Traditional life insurance		125		119		252		235
Immediate annuities with life contingencies		--		9		5		16
Accident and health insurance		187		179		382		359
Total life and annuity premiums		312		307		639		610
Interest-sensitive life insurance		202		268		476		541
Fixed annuities		4		4		10		7
Total contract charges		206		272		486		548
Total life and annuity premiums and contract charges		518		579		1,125		1,158
Net investment income		538		633		1,178		1,268
Realized capital gains and losses		(10)		57		(9)		76
Total Allstate Financial		1,046		1,269		2,294		2,502
Corporate and Other
Service fees		1		2		3		3
Net investment income		9		8		16		15
Total Corporate and Other before reclassification of service fees		10		10		19		18
Reclassification of service fees (1)		(1)		(2)		(3)		(3)
Total Corporate and Other		9		8		16		15
Consolidated revenues	$	8,860	$	8,787	$	17,544	$	17,250

(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,
		2014		2013		2014		2013
Net income
Property-Liability
Underwriting income (loss)
Allstate Protection	$	192	$	273	$	567	$	735
Discontinued Lines and Coverages		(3)		(4)		(6)		(8)
Total underwriting income		189		269		561		727
Net investment income		351		343		663		684
Income tax expense on operations		(185)		(191)		(410)		(447)
Realized capital gains and losses, after-tax		161		197		195		270
Gain (loss) on disposition of operations, after-tax		38		(1)		38		(1)
Property-Liability net income available to common shareholders		554		617		1,047		1,233
Allstate Financial
Life and annuity premiums and contract charges		518		579		1,125		1,158
Net investment income		538		633		1,178		1,268
Periodic settlements and accruals on non-hedge derivative instruments		(1)		5		(1)		15
Contract benefits and interest credited to contractholder funds		(621)		(786)		(1,400)		(1,580)
Operating costs and expenses and amortization of deferred policy acquisition costs		(177)		(205)		(369)		(429)
Restructuring and related charges		(1)		(1)		(3)		(3)
Income tax expense on operations		(91)		(68)		(176)		(128)
Operating income		165		157		354		301
Realized capital gains and losses, after-tax		(6)		37		(6)		49
Valuation changes on embedded derivatives that are not hedged, after-tax		(3)		3		(14)		(3)
DAC and DSI amortization related to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax		--		(4)		--		(3)
Reclassification of periodic settlements and accruals on non-hedge derivative instruments, after-tax		1		(4)		1		(10)
(Loss) gain on disposition of operations, after-tax		(12)		1		(28)		2
Allstate Financial net income available to common shareholders		145		190		307		336
Corporate and Other
Service fees (1)		1		2		3		3
Net investment income		9		8		16		15
Operating costs and expenses (1)		(95)		(108)		(192)		(204)
Income tax benefit on operations		32		37		64		72
Preferred stock dividends		(31)		--		(44)		--
Operating loss		(84)		(61)		(153)		(114)
Realized capital gains and losses, after-tax		(1)		--		--		--
Loss on extinguishment of debt, after-tax		--		(312)		--		(312)
Corporate and Other net loss available to common shareholders		(85)		(373)		(153)		(426)
Consolidated net income available to common shareholders	$	614	$	434	$	1,201	$	1,143

(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.