Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 17, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-11840 | |
Entity Registrant Name | ALLSTATE CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-3871531 | |
Entity Address, Address Line One | 3100 Sanders Road | |
Entity Address, City or Town | Northbrook | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60062 | |
City Area Code | 847 | |
Local Phone Number | 402-5000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 265,209,574 | |
Entity Central Index Key | 0000899051 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Stock, par value $.01 per share | NEW YORK STOCK EXCHANGE, INC. | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | ALL | |
Security Exchange Name | NYSE | |
Common Stock, par value $.01 per share | CHICAGO STOCK EXCHANGE, INC | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | ALL | |
Security Exchange Name | CHX | |
5.100% Fixed-to-Floating Rate Subordinated Debentures due 2053 | NEW YORK STOCK EXCHANGE, INC. | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 5.100% Fixed-to-Floating Rate Subordinated Debentures due 2053 | |
Trading Symbol | ALL.PR.B | |
Security Exchange Name | NYSE | |
Series G Preferred Stock | NEW YORK STOCK EXCHANGE, INC. | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares represent 1/1,000th of a share of 5.625% Noncumulative Preferred Stock, Series G | |
Trading Symbol | ALL PR G | |
Security Exchange Name | NYSE | |
Series H Preferred Stock | NEW YORK STOCK EXCHANGE, INC. | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares represent 1/1,000th of a share of 5.100% Noncumulative Preferred Stock, Series H | |
Trading Symbol | ALL PR H | |
Security Exchange Name | NYSE | |
Series I Preferred Stock | NEW YORK STOCK EXCHANGE, INC. | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares represent 1/1,000th of a share of 4.750% Noncumulative Preferred Stock, Series I | |
Trading Symbol | ALL PR I | |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues | ||||
Net investment income | $ 690 | $ 764 | $ 1,846 | $ 2,446 |
Net gains (losses) on investments and derivatives | (167) | 105 | (1,167) | 818 |
Total revenues | 13,208 | 12,480 | 37,765 | 37,577 |
Costs and expenses | ||||
Property and casualty insurance claims and claims expense | 10,073 | 8,264 | 27,262 | 21,514 |
Shelter-in-Place Payback expense | 0 | 0 | 0 | 29 |
Accident, health and other policy benefits | 263 | 277 | 801 | 771 |
Amortization of deferred policy acquisition costs | 1,682 | 1,582 | 4,913 | 4,650 |
Operating costs and expenses | 1,842 | 1,890 | 5,594 | 5,304 |
Pension and other postretirement remeasurement (gains) losses | 79 | 40 | 91 | (404) |
Restructuring and related charges | 14 | 23 | 27 | 145 |
Amortization of purchased intangibles | 90 | 109 | 264 | 267 |
Interest expense | 85 | 69 | 251 | 246 |
Total costs and expenses | 14,128 | 12,254 | 39,203 | 32,522 |
(Loss) income from operations before income tax expense | (920) | 226 | (1,438) | 5,055 |
Income tax (benefit) expense | (237) | 20 | (377) | 1,008 |
Net (loss) income from continuing operations | (683) | 206 | (1,061) | 4,047 |
Income (loss) from discontinued operations, net of tax | 0 | 325 | 0 | (3,272) |
Net (loss) income | (683) | 531 | (1,061) | 775 |
Less: Net loss attributable to noncontrolling interest | (15) | (7) | (34) | (7) |
Net (loss) income attributable to Allstate | (668) | 538 | (1,027) | 782 |
Less: Preferred stock dividends | 26 | 30 | 79 | 87 |
Net (loss) income applicable to common shareholders | $ (694) | $ 508 | $ (1,106) | $ 695 |
Basic | ||||
Continuing operations (in dollars per share) | $ (2.58) | $ 0.62 | $ (4.04) | $ 13.31 |
Discontinued operations (in dollars per share) | 0 | 1.11 | 0 | (10.98) |
Earnings per common share applicable to common shareholders - Basic (in dollars per share) | (2.58) | 1.73 | (4.04) | 2.33 |
Diluted | ||||
Continuing operations (in dollars per share) | (2.58) | 0.62 | (4.04) | 13.11 |
Discontinued operations (in dollars per share) | 0 | 1.09 | 0 | (10.81) |
Earnings per common share applicable to common shareholders - Diluted (in dollars per share) | $ (2.58) | $ 1.71 | $ (4.04) | $ 2.30 |
Weighted average common shares - Basic (in shares) | 268.7 | 293.1 | 273.5 | 298.1 |
Weighted average common shares - Diluted (in shares) | 268.7 | 297.9 | 273.5 | 302.6 |
Property and casualty insurance premiums | ||||
Revenues | ||||
Property and casualty insurance premiums | $ 11,661 | $ 10,615 | $ 34,004 | $ 31,366 |
Accident and health insurance premiums and contract charges | ||||
Revenues | ||||
Insurance premiums, commissions and fees | 463 | 460 | 1,398 | 1,362 |
Other revenue | ||||
Revenues | ||||
Insurance premiums, commissions and fees | $ 561 | $ 536 | $ 1,684 | $ 1,585 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (683) | $ 531 | $ (1,061) | $ 775 |
Changes in: | ||||
Unrealized net capital gains and losses | (789) | (336) | (3,525) | (1,352) |
Unrealized foreign currency translation adjustments | (88) | (21) | (135) | 10 |
Unamortized pension and other postretirement prior service credit | (8) | (15) | (38) | (44) |
Other comprehensive loss, after-tax | (885) | (372) | (3,698) | (1,386) |
Comprehensive (loss) income | (1,568) | 159 | (4,759) | (611) |
Less: Comprehensive loss attributable to noncontrolling interest | (21) | (7) | (60) | (8) |
Comprehensive (loss) income attributable to Allstate | $ (1,547) | $ 166 | $ (4,699) | $ (603) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Financial Position (unaudited) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Investments | ||
Fixed income securities, at fair value (amortized cost, net $45,468 and $41,376) | $ 41,715 | $ 42,136 |
Equity securities, at fair value (cost $4,652 and $6,016) | 4,723 | 7,061 |
Mortgage loans, net | 833 | 821 |
Limited partnership interests | 7,907 | 8,018 |
Short-term, at fair value (amortized cost $4,031 and $4,009) | 4,030 | 4,009 |
Other investments, net | 1,798 | 2,656 |
Total investments | 61,006 | 64,701 |
Cash | 786 | 763 |
Premium installment receivables, net | 9,150 | 8,364 |
Deferred policy acquisition costs | 5,273 | 4,722 |
Reinsurance and indemnification recoverables, net | 9,961 | 10,024 |
Accrued investment income | 389 | 339 |
Deferred income taxes | 492 | 0 |
Property and equipment, net | 1,008 | 939 |
Goodwill | 3,502 | 3,502 |
Other assets, net | 6,109 | 6,086 |
Total assets | 97,676 | 99,440 |
Liabilities | ||
Reserve for property and casualty insurance claims and claims expense | 36,529 | 33,060 |
Reserve for future policy benefits | 1,276 | 1,273 |
Contractholder funds | 909 | 908 |
Unearned premiums | 22,026 | 19,844 |
Claim payments outstanding | 1,196 | 1,123 |
Deferred income taxes | 0 | 833 |
Other liabilities and accrued expenses | 10,212 | 9,296 |
Long-term debt | 7,967 | 7,976 |
Total liabilities | 80,115 | 74,313 |
Commitments and Contingent Liabilities (Note 12) | ||
Equity | ||
Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized, 81.0 thousand shares issued and outstanding, $2,025 aggregate liquidation preference | 1,970 | 1,970 |
Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 266 million and 281 million shares outstanding | 9 | 9 |
Additional capital paid-in | 3,765 | 3,722 |
Retained income | 51,490 | 53,294 |
Treasury stock, at cost (634 million and 619 million shares) | (36,518) | (34,471) |
Accumulated other comprehensive income: | ||
Unrealized net capital gains and losses | (2,927) | 598 |
Unrealized foreign currency translation adjustments | (150) | (15) |
Unamortized pension and other postretirement prior service credit | 34 | 72 |
Total accumulated other comprehensive income (“AOCI”) | (3,043) | 655 |
Total Allstate shareholders’ equity | 17,673 | 25,179 |
Noncontrolling interest | (112) | (52) |
Total equity | 17,561 | 25,127 |
Total liabilities and equity | $ 97,676 | $ 99,440 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Financial Position (unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Fixed income securities, at fair value, amortized cost | $ 45,468 | $ 41,376 |
Equity securities, at fair value, cost | 4,652 | 6,016 |
Short-term, at fair value, amortized cost | $ 4,031 | $ 4,009 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 81,000 | 81,000 |
Preferred stock, shares outstanding (in shares) | 81,000 | 81,000 |
Preferred stock, value aggregate liquidation preference | $ 2,025 | $ 2,025 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 900,000,000 | 900,000,000 |
Common stock, shares outstanding (in shares) | 266,000,000 | 281,000,000 |
Treasury stock, shares (in shares) | 634,000,000 | 619,000,000 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Shareholders’ Equity (unaudited) - USD ($) $ in Millions | Total | Preferred stock par value | Preferred stock additional capital paid-in | Common Stock, par value $.01 per share | Common stock additional capital paid-in | Retained income | Treasury stock | Accumulated other comprehensive income | Noncontrolling interest |
Increase (decrease) in equity | |||||||||
Total equity | $ 1,970 | $ 3,498 | $ 52,767 | $ (31,331) | $ 3,304 | $ 0 | |||
Balance, beginning of period at Dec. 31, 2020 | 1,970 | 3,498 | 52,767 | (31,331) | 3,304 | 0 | |||
Increase (decrease) in equity | |||||||||
Acquisition | 450 | (14) | |||||||
Preferred stock redemption | (450) | ||||||||
Forward contract on accelerated share repurchase agreement | 113 | ||||||||
Equity incentive plans activity | 89 | ||||||||
Net income (loss) | $ 775 | 782 | (7) | ||||||
Dividends on common stock (declared per share of $0.85, $0.81, $2.55 and $2.43) | (726) | ||||||||
Dividends on preferred stock | (87) | ||||||||
Shares acquired | (2,390) | ||||||||
Shares reissued under equity incentive plans, net | 117 | ||||||||
Change in unrealized net capital gains and losses | (1,352) | (1,352) | (1) | ||||||
Change in unrealized foreign currency translation adjustments | 10 | 10 | |||||||
Change in unamortized pension and other postretirement prior service credit | (44) | (44) | |||||||
Balance, end of period at Sep. 30, 2021 | 26,707 | $ 0 | 1,970 | $ 9 | 3,700 | 52,736 | (33,604) | 1,918 | (22) |
Increase (decrease) in equity | |||||||||
Total equity | 2,170 | 3,668 | 52,464 | (32,394) | 2,290 | (15) | |||
Balance, beginning of period at Jun. 30, 2021 | 2,170 | 3,668 | 52,464 | (32,394) | 2,290 | (15) | |||
Increase (decrease) in equity | |||||||||
Acquisition | 0 | 0 | |||||||
Preferred stock redemption | (200) | ||||||||
Forward contract on accelerated share repurchase agreement | 0 | ||||||||
Equity incentive plans activity | 32 | ||||||||
Net income (loss) | 531 | 538 | (7) | ||||||
Dividends on common stock (declared per share of $0.85, $0.81, $2.55 and $2.43) | (236) | ||||||||
Dividends on preferred stock | (30) | ||||||||
Shares acquired | (1,227) | ||||||||
Shares reissued under equity incentive plans, net | 17 | ||||||||
Change in unrealized net capital gains and losses | (336) | (336) | 0 | ||||||
Change in unrealized foreign currency translation adjustments | (21) | (21) | |||||||
Change in unamortized pension and other postretirement prior service credit | (15) | (15) | |||||||
Balance, end of period at Sep. 30, 2021 | 26,707 | 0 | 1,970 | 9 | 3,700 | 52,736 | (33,604) | 1,918 | (22) |
Increase (decrease) in equity | |||||||||
Total Allstate shareholders’ equity | 26,729 | ||||||||
Total equity | 26,707 | 0 | 1,970 | 9 | 3,700 | 52,736 | (33,604) | 1,918 | (22) |
Total Allstate shareholders’ equity | 25,179 | ||||||||
Total equity | 25,127 | 1,970 | 3,722 | 53,294 | (34,471) | 655 | (52) | ||
Balance, beginning of period at Dec. 31, 2021 | 25,127 | 1,970 | 3,722 | 53,294 | (34,471) | 655 | (52) | ||
Increase (decrease) in equity | |||||||||
Acquisition | 0 | 0 | |||||||
Preferred stock redemption | 0 | ||||||||
Forward contract on accelerated share repurchase agreement | 0 | ||||||||
Equity incentive plans activity | 43 | ||||||||
Net income (loss) | (1,061) | (1,027) | (34) | ||||||
Dividends on common stock (declared per share of $0.85, $0.81, $2.55 and $2.43) | (698) | ||||||||
Dividends on preferred stock | (79) | ||||||||
Shares acquired | (2,142) | ||||||||
Shares reissued under equity incentive plans, net | 95 | ||||||||
Change in unrealized net capital gains and losses | (3,525) | (3,525) | (26) | ||||||
Change in unrealized foreign currency translation adjustments | (135) | (135) | |||||||
Change in unamortized pension and other postretirement prior service credit | (38) | (38) | |||||||
Balance, end of period at Sep. 30, 2022 | 17,561 | 0 | 1,970 | 9 | 3,765 | 51,490 | (36,518) | (3,043) | (112) |
Increase (decrease) in equity | |||||||||
Total equity | 1,970 | 3,740 | 52,412 | (35,858) | (2,158) | (91) | |||
Balance, beginning of period at Jun. 30, 2022 | 1,970 | 3,740 | 52,412 | (35,858) | (2,158) | (91) | |||
Increase (decrease) in equity | |||||||||
Acquisition | 0 | 0 | |||||||
Preferred stock redemption | 0 | ||||||||
Forward contract on accelerated share repurchase agreement | 0 | ||||||||
Equity incentive plans activity | 25 | ||||||||
Net income (loss) | (683) | (668) | (15) | ||||||
Dividends on common stock (declared per share of $0.85, $0.81, $2.55 and $2.43) | (228) | ||||||||
Dividends on preferred stock | (26) | ||||||||
Shares acquired | (665) | ||||||||
Shares reissued under equity incentive plans, net | 5 | ||||||||
Change in unrealized net capital gains and losses | (789) | (789) | (6) | ||||||
Change in unrealized foreign currency translation adjustments | (88) | (88) | |||||||
Change in unamortized pension and other postretirement prior service credit | (8) | (8) | |||||||
Balance, end of period at Sep. 30, 2022 | 17,561 | 0 | 1,970 | 9 | 3,765 | 51,490 | (36,518) | (3,043) | (112) |
Increase (decrease) in equity | |||||||||
Total Allstate shareholders’ equity | 17,673 | ||||||||
Total equity | $ 17,561 | $ 0 | $ 1,970 | $ 9 | $ 3,765 | $ 51,490 | $ (36,518) | $ (3,043) | $ (112) |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Shareholders’ Equity (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends (in dollars per share) | $ 0.85 | $ 0.81 | $ 2.55 | $ 2.43 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities | ||
Net (loss) income | $ (1,061) | $ 775 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, amortization and other non-cash items | 646 | 818 |
Net (gains) losses on investments and derivatives | 1,167 | (1,011) |
Pension and other postretirement remeasurement (gains) losses | 91 | (404) |
Amortization of deferred gain on reinsurance | 0 | (5) |
Loss on disposition of operations, net of tax | 0 | 3,754 |
Changes in: | ||
Policy benefits and other insurance reserves | 3,520 | 2,771 |
Unearned premiums | 2,256 | 1,490 |
Deferred policy acquisition costs | (562) | (492) |
Premium installment receivables, net | (1,022) | (606) |
Reinsurance recoverables, net | 56 | (1,973) |
Income taxes | (559) | 31 |
Other operating assets and liabilities | (381) | (903) |
Net cash provided by operating activities | 4,151 | 4,245 |
Proceeds from sales | ||
Fixed income securities | 25,577 | 22,610 |
Equity securities | 8,767 | 3,151 |
Limited partnership interests | 786 | 574 |
Other investments | 1,034 | 696 |
Investment collections | ||
Fixed income securities | 526 | 1,965 |
Mortgage loans | 92 | 747 |
Other investments | 144 | 421 |
Investment purchases | ||
Fixed income securities | (30,103) | (22,682) |
Equity securities | (7,613) | (1,790) |
Limited partnership interests | (860) | (927) |
Mortgage loans | (104) | (97) |
Other investments | (269) | (1,470) |
Change in short-term and other investments, net | 1,094 | 854 |
Purchases of property and equipment, net | (352) | (286) |
Acquisition of operations, net of cash acquired | 0 | (3,481) |
Other | 0 | 4 |
Net cash (used in) provided by investing activities | (1,281) | 289 |
Cash flows from financing activities | ||
Redemption and repayment of long-term debt | 0 | (422) |
Redemption of preferred stock | 0 | (450) |
Contractholder fund deposits | 102 | 741 |
Contractholder fund withdrawals | (31) | (1,036) |
Dividends paid on common stock | (698) | (650) |
Dividends paid on preferred stock | (79) | (87) |
Treasury stock purchases | (2,150) | (2,257) |
Shares reissued under equity incentive plans, net | 61 | 108 |
Other | (52) | (12) |
Net cash used in financing activities | (2,847) | (4,065) |
Net increase in cash, including cash classified as assets held for sale | 23 | 469 |
Cash from continuing operations at beginning of period | 763 | 311 |
Cash classified as assets held for sale at beginning of period | 0 | 66 |
Less: Cash classified as assets held for sale at end of period | 0 | 156 |
Cash from continuing operations at end of period | $ 786 | $ 690 |
General
General | 9 Months Ended |
Sep. 30, 2022 | |
General [Abstract] | |
General | Note 1 General Basis of presentation The accompanying condensed consolidated financial statements include the accounts of The Allstate Corporation (the “Corporation”) and its wholly owned subsidiaries, primarily Allstate Insurance Company (“AIC”), a property and casualty insurance company with various property and casualty and investment subsidiaries (collectively referred to as the “Company” or “Allstate”) and variable interest entities (“VIEs”) in which the Company is considered a primary beneficiary. These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The condensed consolidated financial statements and notes as of September 30, 2022 and for the three and nine month periods ended September 30, 2022 and 2021 are unaudited. The condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring accruals) which are, in the opinion of management, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods. These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2021. The results of operations for the interim periods should not be considered indicative of results to be expected for the full year. All significant intercompany accounts and transactions have been eliminated. Subsequent Events On October 18, 2022, Allstate closed the sale of its headquarters for $232 million resulting in a gain of approximately $99 million, pre-tax in the fourth quarter of 2022. $16 million of the gain will be classified in Property-Liability net gains and losses on investments and derivatives and $83 million will be classified as other income within the Corporate and Other segment. The Novel Coronavirus Pandemic or COVID-19 (“Coronavirus”) The Coronavirus resulted in governments worldwide enacting emergency measures to combat the spread of the virus, including travel restrictions, government-imposed shelter-in-place orders, quarantine periods, social distancing, and restrictions on large gatherings. These measures have moderated, but new variants of the Coronavirus could result in further economic volatility. The Company continues to closely monitor and proactively adapt to developments and changing conditions. Currently, it is not possible to reliably estimate the impact to its operations, but the effects have been and could be material. Pending accounting standard Accounting for Long-Duration Insurance Contracts In August 2018, the Financial Accounting Standards Board (”FASB”) issued guidance revising the accounting for certain long-duration insurance contracts. As disclosed in Note 3, the Company sold substantially all of its life and annuity business in scope of the new standard. The Company’s reserves and deferred policy acquisition costs (“DAC”) for certain voluntary and individual life and accident and health insurance products are subject to the new guidance. Under the new guidance, measurement assumptions, including those for mortality, morbidity and policy terminations, will be required to be reviewed at least annually, and updated as appropriate. The effects of updating assumptions other than the discount rate are required to be measured on a retrospective basis and reported in net income. In addition, reserves under the new guidance are required to be discounted using an upper-medium grade fixed income instrument yield that is updated through other comprehensive income (“OCI”) at each reporting date. Current GAAP requires the measurement of reserves to utilize assumptions set at policy issuance unless updated current assumptions indicate that recorded reserves are deficient. The new guidance also requires DAC and other capitalized balances currently amortized in proportion to premiums or gross profits to be amortized on a constant level basis over the expected term for all long-duration insurance contracts. DAC will not be subject to loss recognition testing but will be reduced when actual lapse experience exceeds expected experience. The new guidance is effective for financial statements issued for reporting periods beginning after December 15, 2022 and restatement of prior periods presented is required. The new guidance will be applied to affected contracts and DAC on the basis of existing carrying amounts at the earliest period presented. In July 2022, the FASB issued an Exposure Draft of an Accounting Standards Update (“Exposure Draft”) that would provide reporting entities with an accounting policy election to not apply the new guidance to insurance contracts in-force on the January 1, 2021 transition date but sold prior to the January 1, 2023 effective date provided certain conditions are met. The Company will adopt the new guidance effective January 1, 2023, using the modified retrospective approach and make the accounting policy election to not apply the new guidance to insurance contracts in-force on the transition date but sold prior to the effective date. The total impact on equity of implementing the new guidance is expected to be a decrease of between $250 million and $350 million. The expected decrease in equity includes the anticipated decrease in AOCI of between $235 million and $315 million primarily attributable to a change in the discount rate used in measuring the liability for future policy benefits for traditional life contracts and other long-term products with guaranteed terms from a portfolio-based rate at contract issuance to an upper-medium grade fixed income-based rate. The expected decrease in equity also includes the anticipated decrease in retained income of between $15 million and $35 million which primarily relates to certain long-term contracts with guaranteed terms with net premium ratios that are required to be adjusted at the transition date. The impact on equity, AOCI, and retained income excludes sold contracts that would meet the conditions included in the Exposure Draft. The estimated impact to AOCI at transition date is expected to decline significantly at the effective date due to the increase in the discount rate between the transition date and effective date. |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Note 2 Earnings per Common Share Basic earnings per common share is computed using the weighted average number of common shares outstanding, including vested unissued participating restricted stock units. Diluted earnings per common share is computed using the weighted average number of common and dilutive potential common shares outstanding. For the Company, dilutive potential common shares consist of outstanding stock options, unvested non-participating restricted stock units and contingently issuable performance stock awards. The effect of dilutive potential common shares does not include the effect of options with an anti-dilutive effect on earnings per common share because their exercise prices exceed the average market price of Allstate common shares during the period or for which the unrecognized compensation cost would have an anti-dilutive effect. Computation of basic and diluted earnings per common share (In millions, except per share data) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Numerator: Net (loss) income from continuing operations $ (683) $ 206 $ (1,061) $ 4,047 Less: Net loss attributable to noncontrolling interest (15) (7) (34) (7) Net (loss) income from continuing operations attributable to Allstate (668) 213 (1,027) 4,054 Less: Preferred stock dividends 26 30 79 87 Net (loss) income from continuing operations applicable to common shareholders (694) 183 (1,106) 3,967 Income (loss) from discontinued operations, net of tax — 325 — (3,272) Net (loss) income applicable to common shareholders $ (694) $ 508 $ (1,106) $ 695 Denominator: Weighted average common shares outstanding 268.7 293.1 273.5 298.1 Effect of dilutive potential common shares (1) : Stock options — 3.1 — 2.9 Restricted stock units (non-participating) and performance stock awards — 1.7 — 1.6 Weighted average common and dilutive potential common shares outstanding 268.7 297.9 273.5 302.6 Earnings per common share applicable to common shareholders Basic Continuing operations $ (2.58) $ 0.62 $ (4.04) $ 13.31 Discontinued operations — 1.11 — (10.98) Total $ (2.58) $ 1.73 $ (4.04) $ 2.33 Diluted (1) Continuing operations $ (2.58) $ 0.62 $ (4.04) $ 13.11 Discontinued operations — 1.09 — (10.81) Total $ (2.58) $ 1.71 $ (4.04) $ 2.30 Anti-dilutive options excluded from diluted earnings per common share 2.4 0.6 1.6 1.3 Weighted average dilutive potential common shares excluded due to net loss applicable to common shareholders (1) 2.9 — 3.3 — (1) As a result of the net loss reported for the three and nine month periods ended September 30, 2022, weighted average shares for basic earnings per share is also used for calculating diluted earnings per share because all dilutive potential common shares are anti-dilutive and are therefore excluded from the calculation. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Dispositions | Note 3 Acquisitions and Dispositions Acquisitions National General On January 4, 2021, the Company completed the acquisition of National General Holdings Corp. (“National General”), an insurance holding company serving customers predominantly through independent agents for property and casualty and accident and health products. Assets and liabilities recognized in the National General acquisition (1) ($ in millions) January 4, 2021 Assets Investments $ 4,962 Cash 400 Premiums and other receivables, net 1,539 Deferred acquisition costs (value of business acquired) 317 Reinsurance recoverables, net 1,212 Intangible assets 1,199 Other assets 734 Goodwill (2) 1,038 Total assets 11,401 Liabilities Reserve for property and casualty insurance claims and claims expense 2,765 Reserve for future policy benefits 186 Unearned premiums 2,245 Reinsurance payable 363 Debt (3) 593 Deferred tax liabilities 162 Other liabilities 776 Total liabilities $ 7,090 (1) The amounts reflect allocation of assets acquired and liabilities assumed. (2) $675 million, $20 million and $343 million of goodwill were allocated to the Allstate Protection, Protection Services and Allstate Health and Benefits segments, respectively, and is non-deductible for income tax purposes. Goodwill is primarily attributable to expected synergies and future growth opportunities. (3) Subsequent to the acquisition, the Company repaid $100 million of 7.625% Subordinated Notes and $72 million of Subordinated Debentures on February 3, 2021 and March 15, 2021, respectively. As of September 30, 2022, the Company had principal balance remaining of $350 million 6.750% Senior Notes due in 2024, with a fair value adjustment of $31 million. SafeAuto On October 1, 2021, the Company completed the acquisition of Safe Auto Insurance Group, Inc. (“SafeAuto”), a non-standard auto insurance carrier focused on providing state-minimum private-passenger auto insurance direct to consumers with coverage options in 28 states for $267 million in cash. Dispositions Life and annuity business On October 1, 2021, the Company closed the sale of Allstate Life Insurance Company of New York (“ALNY”) to Wilton Reassurance Company for $400 million. On November 1, 2021, the Company closed the sale of Allstate Life Insurance Company (“ALIC”) and certain affiliates to entities managed by Blackstone for total proceeds of $4 billion, including a pre-close dividend of $1.25 billion paid by ALIC. In 2021 and prior periods, the assets and liabilities of the businesses were reclassified as held for sale and results were presented as discontinued operations. Financial results from discontinued operations Three months ended September 30, Nine months ended September 30, ($ in millions) 2021 2021 Revenues Life premiums and contract charges $ 331 $ 1,007 Net investment income 427 1,251 Net gains (losses) on investments and derivatives 4 193 Total revenues 762 2,451 Costs and expenses Life contract benefits 411 1,207 Interest credited to contractholder funds 127 371 Amortization of DAC 27 84 Operating costs and expenses 45 151 Restructuring and related charges 7 30 Total costs and expenses 617 1,843 Amortization of deferred gain on reinsurance 1 5 Income from discontinued operations before income tax expense 146 613 Income tax expense 38 131 Income from discontinued operations, net of tax 108 482 Loss on disposition of operations 89 (4,048) Income tax benefit (128) (294) Loss on disposition of operations, net of tax 217 (3,754) Income (loss) from discontinued operations, net of tax $ 325 $ (3,272) Cash flows from discontinued operations Nine months ended September 30, ($ in millions) 2021 Net cash provided by operating activities from discontinued operations $ 888 Net cash used in investing activities from discontinued operations (405) |
Reportable Segments
Reportable Segments | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Reportable Segments | Note 4 Reportable Segments Measuring segment profit or loss The measure of segment profit or loss used in evaluating performance is underwriting income for the Allstate Protection and Run-off Property-Liability segments and adjusted net income for the Protection Services, Allstate Health and Benefits and Corporate and Other segments. National General results are included in the following segments: • Property and casualty - Allstate Protection • Accident and health - Allstate Health and Benefits • Technology solutions - Protection Services Underwriting income is calculated as premiums earned and other revenue, less claims and claims expenses (“losses”), Shelter-in-Place Payback expense, amortization of DAC, operating costs and expenses, amortization or impairment of purchased intangibles and restructuring and related charges as determined using GAAP. Adjusted net income is net income (loss) applicable to common shareholders, excluding: • Net gains and losses on investments and derivatives • Pension and other postretirement remeasurement gains and losses • Business combination expenses and the amortization or impairment of purchased intangibles • Income or loss from discontinued operations • Gain or loss on disposition of operations • Adjustments for other significant non-recurring, infrequent or unusual items, when (a) the nature of the charge or gain is such that it is reasonably unlikely to recur within two years, or (b) there has been no similar charge or gain within the prior two years • Income tax expense or benefit on reconciling items A reconciliation of these measures to net income (loss) applicable to common shareholders is provided below. Reportable segments financial performance Three months ended September 30, Nine months ended September 30, ($ in millions) 2022 2021 2022 2021 Underwriting income (loss) by segment Allstate Protection $ (1,170) $ (421) $ (1,749) $ 1,670 Run-off Property-Liability (122) (113) (127) (118) Total Property-Liability (1,292) (534) (1,876) 1,552 Adjusted net income (loss) by segment, after-tax Protection Services 35 45 131 150 Allstate Health and Benefits 54 33 172 160 Corporate and Other (104) (95) (322) (330) Reconciling items Property-Liability net investment income 632 710 1,696 2,314 Net gains (losses) on investments and derivatives (167) 105 (1,167) 818 Pension and other postretirement remeasurement gains (losses) (79) (40) (91) 404 Business combination expenses and amortization of purchased intangibles (1) (29) (34) (86) (124) Business combination fair value adjustment — — — 6 Gain (loss) on disposition of operations (5) — 6 — Income tax benefit (expense) on reconciling items 246 (14) 396 (990) Total reconciling items 598 727 754 2,428 Income (loss) from discontinued operations — 235 — (3,435) Income tax benefit from discontinued operations — 90 — 163 Total from discontinued operations $ — $ 325 $ — $ (3,272) Less: Net loss attributable to noncontrolling interest (2) (15) (7) (35) (7) Net (loss) income applicable to common shareholders $ (694) $ 508 $ (1,106) $ 695 (1) Excludes amortization of purchased intangibles in Property-Liability, which is included above in underwriting income. (2) Reflects net loss attributable to noncontrolling interest in Property-Liability. Reportable segments revenue information ($ in millions) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Property-Liability Insurance premiums Auto $ 7,545 $ 6,912 $ 21,974 $ 20,604 Homeowners 2,776 2,522 8,065 7,325 Other personal lines 540 521 1,616 1,545 Commercial lines 296 204 874 590 Allstate Protection 11,157 10,159 32,529 30,064 Run-off Property-Liability — — — — Total Property-Liability insurance premiums 11,157 10,159 32,529 30,064 Other revenue 364 365 1,066 1,071 Net investment income 632 710 1,696 2,314 Net gains (losses) on investments and derivatives (123) 94 (988) 763 Total Property-Liability 12,030 11,328 34,303 34,212 Protection Services Protection plans 330 295 961 834 Roadside assistance 50 50 152 144 Finance and insurance products 124 111 362 324 Intersegment premiums and service fees (1) 39 46 118 133 Other revenue 84 85 269 263 Net investment income 13 10 34 32 Net gains (losses) on investments and derivatives (13) 4 (56) 20 Total Protection Services 627 601 1,840 1,750 Allstate Health and Benefits Employer voluntary benefits 257 251 780 769 Group health 96 90 285 260 Individual health 110 119 333 333 Other revenue 90 85 277 248 Net investment income 17 18 50 56 Net gains (losses) on investments and derivatives (6) (1) (25) 5 Total Allstate Health and Benefits 564 562 1,700 1,671 Corporate and Other Other revenue 23 1 72 3 Net investment income 28 26 66 44 Net gains (losses) on investments and derivatives (25) 8 (98) 30 Total Corporate and Other 26 35 40 77 Intersegment eliminations (1) (39) (46) (118) (133) Consolidated revenues $ 13,208 $ 12,480 $ 37,765 $ 37,577 (1) Intersegment insurance premiums and service fees are primarily related to Arity and Allstate Roadside and are eliminated in the condensed consolidated financial statements. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2022 | |
Investments [Abstract] | |
Investments | Note 5 Investments Portfolio composition ($ in millions) September 30, 2022 December 31, 2021 Fixed income securities, at fair value $ 41,715 $ 42,136 Equity securities, at fair value 4,723 7,061 Mortgage loans, net 833 821 Limited partnership interests 7,907 8,018 Short-term investments, at fair value 4,030 4,009 Other investments, net 1,798 2,656 Total $ 61,006 $ 64,701 Amortized cost, gross unrealized gains (losses) and fair value for fixed income securities ($ in millions) Amortized cost, net Gross unrealized Fair value Gains Losses September 30, 2022 U.S. government and agencies $ 8,756 $ 1 $ (313) $ 8,444 Municipal 6,486 4 (461) 6,029 Corporate 27,614 3 (2,885) 24,732 Foreign government 933 — (43) 890 ABS 1,679 4 (63) 1,620 Total fixed income securities $ 45,468 $ 12 $ (3,765) $ 41,715 December 31, 2021 U.S. government and agencies $ 6,287 $ 12 $ (26) $ 6,273 Municipal 6,130 279 (16) 6,393 Corporate 26,834 688 (192) 27,330 Foreign government 982 9 (6) 985 ABS 1,143 14 (2) 1,155 Total fixed income securities $ 41,376 $ 1,002 $ (242) $ 42,136 Scheduled maturities for fixed income securities ($ in millions) September 30, 2022 December 31, 2021 Amortized cost, net Fair value Amortized cost, net Fair value Due in one year or less $ 2,429 $ 2,398 $ 1,105 $ 1,111 Due after one year through five years 26,566 24,992 21,039 21,291 Due after five years through ten years 11,356 9,738 13,808 14,079 Due after ten years 3,438 2,967 4,281 4,500 43,789 40,095 40,233 40,981 ABS 1,679 1,620 1,143 1,155 Total $ 45,468 $ 41,715 $ 41,376 $ 42,136 Actual maturities may differ from those scheduled as a result of calls and make-whole payments by the issuers. ABS is shown separately because of potential prepayment of principal prior to contractual maturity dates. Net investment income ($ in millions) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Fixed income securities $ 323 $ 279 $ 889 $ 870 Equity securities 30 24 100 51 Mortgage loans 8 9 25 31 Limited partnership interests 325 438 841 1,467 Short-term investments 30 1 42 3 Other investments 38 50 120 139 Investment income, before expense 754 801 2,017 2,561 Investment expense (64) (37) (171) (115) Net investment income $ 690 $ 764 $ 1,846 $ 2,446 Net gains (losses) on investments and derivatives by asset type ($ in millions) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Fixed income securities $ (166) $ 86 $ (644) $ 355 Equity securities (239) 6 (1,222) 322 Mortgage loans 1 — — 19 Limited partnership interests (49) (15) (224) 1 Derivatives 299 46 889 54 Other investments (13) (18) 34 67 Net gains (losses) on investments and derivatives $ (167) $ 105 $ (1,167) $ 818 Net gains (losses) on investments and derivatives by transaction type ($ in millions) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Sales $ (175) $ 80 $ (605) $ 441 Credit losses (6) (12) (30) 2 Valuation change of equity investments (1) (285) (9) (1,421) 321 Valuation change and settlements of derivatives 299 46 889 54 Net gains (losses) on investments and derivatives $ (167) $ 105 $ (1,167) $ 818 (1) Includes valuation change of equity securities and certain limited partnership interests where the underlying assets are predominately public equity securities. Gross realized gains (losses) on sales of fixed income securities ($ in millions) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Gross realized gains $ 19 $ 104 $ 112 $ 460 Gross realized losses (181) (18) (748) (106) The following table presents the net pre-tax appreciation (decline) recognized in net income of equity securities and limited partnership interests carried at fair value that are still held as of September 30, 2022 and 2021, respectively. Net appreciation (decline) recognized in net income ($ in millions) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Equity securities $ (209) $ (20) $ (771) $ 170 Limited partnership interests carried at fair value (36) 137 8 415 Total $ (245) $ 117 $ (763) $ 585 Credit losses recognized in net income ($ in millions) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Assets Fixed income securities: Corporate $ (2) $ — $ (6) $ — ABS (2) — (2) 1 Total fixed income securities (4) — (8) 1 Mortgage loans 1 — — 17 Limited partnership interests (1) — (4) — Other investments Bank loans (2) (13) (18) (16) Agent loans — 1 — — Total credit losses by asset type $ (6) $ (12) $ (30) $ 2 Liabilities Commitments to fund commercial mortgage loans and bank loans — — — — Total $ (6) $ (12) $ (30) $ 2 Unrealized net capital gains and losses included in AOCI ($ in millions) Fair value Gross unrealized Unrealized net gains (losses) September 30, 2022 Gains Losses Fixed income securities $ 41,715 $ 12 $ (3,765) $ (3,753) Short-term investments 4,030 — (1) (1) Derivative instruments — — (3) (3) Equity method of accounting (“EMA”) limited partnerships (1) 7 Unrealized net capital gains and losses, pre-tax (3,750) Other unrealized net capital gains and losses, pre-tax (2) 32 Deferred income taxes 791 Unrealized net capital gains and losses, after-tax $ (2,927) December 31, 2021 Fixed income securities $ 42,136 $ 1,002 $ (242) $ 760 Short-term investments 4,009 — — — Derivative instruments — — (3) (3) EMA limited partnerships (1) (1) Unrealized net capital gains and losses, pre-tax 756 Other unrealized net capital gains and losses, pre-tax (2) 5 Deferred income taxes (163) Unrealized net capital gains and losses, after-tax $ 598 (1) Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of EMA limited partnerships’ OCI. Fair value and gross unrealized gains and losses are not applicable. (2) Includes amounts recognized for the reclassification of unrealized gains and losses related to noncontrolling interest and the amount by which the amortization of DAC would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized. Change in unrealized net capital gains (losses) ($ in millions) Nine months ended September 30, 2022 Fixed income securities $ (4,513) Short-term investments (1) Derivative instruments — EMA limited partnerships 8 Total (4,506) Other unrealized net capital gains and losses, pre-tax 27 Deferred income taxes 954 Decrease in unrealized net capital gains and losses, after-tax $ (3,525) Carrying value for limited partnership interests ($ in millions) September 30, 2022 December 31, 2021 EMA Fair Value Total EMA Fair Value Total Private equity $ 5,287 $ 1,280 $ 6,567 $ 4,905 $ 1,434 $ 6,339 Real estate 881 38 919 823 97 920 Other (1) 421 — 421 759 — 759 Total $ 6,589 $ 1,318 $ 7,907 $ 6,487 $ 1,531 $ 8,018 (1) Other consists of certain limited partnership interests where the underlying assets are predominately public equity and debt securities. Short-term investments Short-term investments, including money market funds, commercial paper, U.S. Treasury bills and other short-term investments, are carried at fair value. As of September 30, 2022 and December 31, 2021, the fair value of short-term investments totaled $4.03 billion and $4.01 billion, respectively. Other investments Other investments primarily consist of bank loans, real estate, policy loans and derivatives. Bank loans are primarily senior secured corporate loans and are carried at amortized cost, net. Policy loans are carried at unpaid principal balances. Real estate is carried at cost less accumulated depreciation. Derivatives are carried at fair value. Other investments by asset type ($ in millions) September 30, 2022 December 31, 2021 Bank loans, net $ 748 $ 1,574 Real estate 774 809 Policy loans 119 148 Derivatives 48 12 Other 109 113 Total $ 1,798 $ 2,656 Portfolio monitoring and credit losses Fixed income securities The Company has a comprehensive portfolio monitoring process to identify and evaluate each fixed income security that may require a credit loss allowance . For each fixed income security in an unrealized loss position, the Company assesses whether management with the appropriate authority has made the decision to sell or whether it is more likely than not the Company will be required to sell the security before recovery of the amortized cost basis for reasons such as liquidity, contractual or regulatory purposes. If a security meets either of these criteria, any existing credit loss allowance would be written-off against the amortized cost basis of the asset along with any remaining unrealized losses, with incremental losses recorded in earnings. If the Company has not made the decision to sell the fixed income security and it is not more likely than not the Company will be required to sell the fixed income security before recovery of its amortized cost basis, the Company evaluates whether it expects to receive cash flows sufficient to recover the entire amortized cost basis of the security. The Company calculates the estimated recovery value based on the best estimate of future cash flows considering past events, current conditions and reasonable and supportable forecasts. The estimated future cash flows are discounted at the security’s current effective rate and is compared to the amortized cost of the security. The determination of cash flow estimates is inherently subjective, and methodologies may vary depending on facts and circumstances specific to the security. All reasonably available information relevant to the collectability of the security is considered when developing the estimate of cash flows expected to be collected. That information generally includes, but is not limited to, the remaining payment terms of the security, prepayment speeds, the financial condition and future earnings potential of the issue or issuer, expected defaults, expected recoveries, the value of underlying collateral, origination vintage year, geographic concentration of underlying collateral, available reserves or escrows, current subordination levels, third-party guarantees and other credit enhancements. Other information, such as industry analyst reports and forecasts, credit ratings, financial condition of the bond insurer for insured fixed income securities, and other market data relevant to the realizability of contractual cash flows, may also be considered. The estimated fair value of collateral will be used to estimate recovery value if the Company determines that the security is dependent on the liquidation of collateral for ultimate settlement. If the Company does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the fixed income security, a credit loss allowance is recorded in earnings for the shortfall in expected cash flows; however, the amortized cost, net of the credit loss allowance, may not be lower than the fair value of the security. The portion of the unrealized loss related to factors other than credit remains classified in AOCI. If the Company determines that the fixed income security does not have sufficient cash flow or other information to estimate a recovery value for the security, the Company may conclude that the entire decline in fair value is deemed to be credit related and the loss is recorded in earnings. When a security is sold or otherwise disposed or when the security is deemed uncollectible and written off, the Company removes amounts previously recognized in the credit loss allowance. Recoveries after write-offs are recognized when received. Accrued interest excluded from the amortized cost of fixed income securities totaled $359 million and $311 million as of September 30, 2022 and December 31, 2021, respectively, and is reported within the accrued investment income line of the Condensed Consolidated Statements of Financial Position. The Company monitors accrued interest and writes off amounts when they are not expected to be received. The Company’s portfolio monitoring process includes a quarterly review of all securities to identify instances where the fair value of a security compared to its amortized cost is below internally established thresholds. The process also includes the monitoring of other credit loss indicators such as ratings, ratings downgrades and payment defaults. The securities identified, in addition to other securities for which the Company may have a concern, are evaluated for potential credit losses using all reasonably available information relevant to the collectability or recovery of the security. Inherent in the Company’s evaluation of credit losses for these securities are assumptions and estimates about the financial condition and future earnings potential of the issue or issuer. Some of the factors that may be considered in evaluating whether a decline in fair value requires a credit loss allowance are: 1) the financial condition, near-term and long-term prospects of the issue or issuer, including relevant industry specific market conditions and trends, geographic location and implications of rating agency actions and offering prices; 2) the specific reasons that a security is in an unrealized loss position, including overall market conditions which could affect liquidity; and 3) the extent to which the fair value has been less than amortized cost. Rollforward of credit loss allowance for fixed income securities Three months ended September 30, Nine months ended September 30, ($ in millions) 2022 2021 2022 2021 Beginning balance $ (10) $ (2) $ (6) $ (3) Credit losses on securities for which credit losses not previously reported (2) — (2) — Net (increases) decreases related to credit losses previously reported (2) — (6) 1 Reduction of allowance related to sales 1 — 1 — Write-offs — — — — Ending balance (1) (2) $ (13) $ (2) $ (13) $ (2) (1) Allowance for fixed income securities as of September 30, 2022 comprised $11 million and $2 million of corporate bonds and ABS, respectively. Allowance for fixed income securities as of September 30, 2021 comprised $1 million and $1 million of corporate bonds and ABS, respectively. (2) Includes $1 million of credit loss allowance for fixed income securities that were classified as held for sale as of September 30, 2021. Gross unrealized losses and fair value by type and length of time held in a continuous unrealized loss position ($ in millions) Less than 12 months 12 months or more Total unrealized losses Number of issues Fair value Unrealized losses Number of issues Fair value Unrealized losses September 30, 2022 Fixed income securities U.S. government and agencies 137 $ 6,980 $ (231) 53 $ 1,428 $ (82) $ (313) Municipal 3,880 5,508 (400) 289 341 (61) (461) Corporate 2,611 21,603 (2,305) 515 2,879 (580) (2,885) Foreign government 80 744 (27) 42 141 (16) (43) ABS 269 1,484 (58) 62 36 (5) (63) Total fixed income securities 6,977 $ 36,319 $ (3,021) 961 $ 4,825 $ (744) $ (3,765) Investment grade fixed income securities 6,313 $ 32,385 $ (2,346) 902 $ 4,474 $ (643) $ (2,989) Below investment grade fixed income securities 664 3,934 (675) 59 351 (101) (776) Total fixed income securities 6,977 $ 36,319 $ (3,021) 961 $ 4,825 $ (744) $ (3,765) December 31, 2021 Fixed income securities U.S. government and agencies 112 $ 5,451 $ (24) 4 $ 72 $ (2) $ (26) Municipal 767 1,213 (15) 2 14 (1) (16) Corporate 1,197 9,725 (176) 22 130 (16) (192) Foreign government 51 415 (6) 4 3 — (6) ABS 80 500 (2) 53 8 — (2) Total fixed income securities 2,207 $ 17,304 $ (223) 85 $ 227 $ (19) $ (242) Investment grade fixed income securities 1,993 $ 15,391 $ (188) 71 $ 183 $ (8) $ (196) Below investment grade fixed income securities 214 1,913 (35) 14 44 (11) (46) Total fixed income securities 2,207 $ 17,304 $ (223) 85 $ 227 $ (19) $ (242) Gross unrealized losses by unrealized loss position and credit quality as of September 30, 2022 ($ in millions) Investment grade Below investment grade Total Fixed income securities with unrealized loss position less than 20% of amortized cost, net (1) (2) $ (2,422) $ (439) $ (2,861) Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost, net (3) (4) (567) (337) (904) Total unrealized losses $ (2,989) $ (776) $ (3,765) (1) Below investment grade fixed income securities include $419 million that have been in an unrealized loss position for less than twelve months. (2) Related to securities with an unrealized loss position less than 20% of amortized cost, net, the degree of which suggests that these securities do not pose a high risk of having credit losses. (3) No below investment grade fixed income securities have been in an unrealized loss position for a period of twelve or more consecutive months. (4) Evaluated based on factors such as discounted cash flows and the financial condition and near-term and long-term prospects of the issue or issuer and were determined to have adequate resources to fulfill contractual obligations. Investment grade is defined as a security having a National Association of Insurance Commissioners (“NAIC”) designation of 1 or 2, which is comparable to a rating of Aaa, Aa, A or Baa from Moody’s or AAA, AA, A or BBB from S&P Global Ratings (“S&P”), or a comparable internal rating if an externally provided rating is not available. Market prices for certain securities may have credit spreads which imply higher or lower credit quality than the current third-party rating. Unrealized losses on investment grade securities are principally related to an increase in market yields which may include increased risk-free interest rates or wider credit spreads since the time of initial purchase. The unrealized losses are expected to reverse as the securities approach maturity. ABS in an unrealized loss position were evaluated based on actual and projected collateral losses relative to the securities’ positions in the respective securitization trusts, security specific expectations of cash flows, and credit ratings. This evaluation also takes into consideration credit enhancement, measured in terms of (i) subordination from other classes of securities in the trust that are contractually obligated to absorb losses before the class of security the Company owns, and (ii) the expected impact of other structural features embedded in the securitization trust beneficial to the class of securities the Company owns, such as overcollateralization and excess spread. Municipal bonds in an unrealized loss position were evaluated based on the underlying credit quality of the primary obligor, obligation type and quality of the underlying assets. As of September 30, 2022, the Company has not made the decision to sell and it is not more likely than not the Company will be required to sell fixed income securities with unrealized losses before recovery of the amortized cost basis. Loans The Company establishes a credit loss allowance for mortgage loans and bank loans when they are originated or purchased, and for unfunded commitments unless they are unconditionally cancellable by the Company. The Company uses a probability of default and loss given default model for mortgage loans and bank loans to estimate current expected credit losses that considers all relevant information available including past events, current conditions, and reasonable and supportable forecasts over the life of an asset. The Company also considers such factors as historical losses, expected prepayments and various economic factors. For mortgage loans the Company considers origination vintage year and property level information such as debt service coverage, property type, property location and collateral value. For bank loans, the Company considers the credit rating of the borrower, credit spreads and type of loan. After the reasonable and supportable forecast period, the Company’s model reverts to historical loss trends. Loans are evaluated on a pooled basis when they share similar risk characteristics. The Company monitors loans through a quarterly credit monitoring process to determine when they no longer share similar risk characteristics and are to be evaluated individually when estimating credit losses. Loans are written off against their corresponding allowances when there is no reasonable expectation of recovery. If a loan recovers after a write-off, the estimate of expected credit losses includes the expected recovery. Accrual of income is suspended for loans that are in default or when full and timely collection of principal and interest payments is not probable. Accrued income receivable is monitored for recoverability and when not expected to be collected is written off through net investment income. Cash receipts on loans on non-accrual status are generally recorded as a reduction of amortized cost. Accrued interest is excluded from the amortized cost of loans and is reported within the accrued investment income line of the Condensed Consolidated Statements of Financial Position. Accrued interest ($ in millions) September 30, December 31, 2022 2021 Mortgage loans $ 3 $ 2 Bank Loans 4 4 Mortgage loans When it is determined a mortgage loan shall be evaluated individually, the Company uses various methods to estimate credit losses on individual loans such as using collateral value less estimated costs to sell where applicable, including when foreclosure is probable or when repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. When collateral value is used, the mortgage loans may not have a credit loss allowance when the fair value of the collateral exceeds the loan’s amortized cost. An alternative approach may be utilized to estimate credit losses using the present value of the loan’s expected future repayment cash flows discounted at the loan’s current effective interest rate. Individual loan credit loss allowances are adjusted for subsequent changes in the fair value of the collateral less costs to sell, when applicable, or present value of the loan’s expected future repayment cash flows. Debt service coverage ratio is considered a key credit quality indicator when mortgage loan credit loss allowances are estimated. Debt service coverage ratio represents the amount of estimated cash flow from the property available to the borrower to meet principal and interest payment obligations. Debt service coverage ratio estimates are updated annually or more frequently if conditions are warranted based on the Company’s credit monitoring process. Mortgage loans amortized cost by debt service coverage ratio distribution and year of origination September 30, 2022 December 31, 2021 ($ in millions) 2017 and prior 2018 2019 2020 2021 Current Total Total Below 1.0 $ — $ — $ — $ — $ — $ 18 $ 18 $ — 1.0 - 1.25 35 — — 10 — 22 67 46 1.26 - 1.50 13 5 103 — — 7 128 160 Above 1.50 77 101 136 41 217 54 626 621 Amortized cost before allowance $ 125 $ 106 $ 239 $ 51 $ 217 $ 101 $ 839 $ 827 Allowance (6) (6) Amortized cost, net $ 833 $ 821 Mortgage loans with a debt service coverage ratio below 1.0 that are not considered impaired primarily relate to situations where the borrower has the financial capacity to fund the revenue shortfalls from the properties for the foreseeable term, the decrease in cash flows from the properties is considered temporary, or there are other risk mitigating factors such as additional collateral, escrow balances or borrower guarantees. Payments on all mortgage loans were current as of September 30, 2022 and December 31, 2021. Rollforward of credit loss allowance for mortgage loans Three months ended September 30, Nine months ended September 30, ($ in millions) 2022 2021 2022 2021 Beginning balance $ (7) $ (30) $ (6) $ (67) Net (increases) decreases related to credit losses 1 2 — 39 Write-offs — — — — Ending balance (1) $ (6) $ (28) $ (6) $ (28) (1) Includes $21 million of credit loss allowance for mortgage loans that were classified as held for sale as of September 30, 2021. Bank loans When it is determined a bank loan shall be evaluated individually, the Company uses various methods to estimate credit losses on individual loans such as the present value of the loan’s expected future repayment cash flows discounted at the loan’s current effective interest rate. Credit ratings of the borrower are considered a key credit quality indicator when bank loan credit loss allowances are estimated. The ratings are either received from the Securities Valuation Office of the NAIC based on availability of applicable ratings from rating agencies on the NAIC credit rating provider list or a comparable internal rating. The year of origination is determined to be the year in which the asset is acquired. Bank loans amortized cost by credit rating and year of origination September 30, 2022 December 31, 2021 ($ in millions) 2017 and prior 2018 2019 2020 2021 Current Total Total NAIC 2 / BBB $ — $ — $ 7 $ 5 $ 37 $ — $ 49 $ 86 NAIC 3 / BB 9 — 7 3 262 14 295 656 NAIC 4 / B 8 16 18 18 271 30 361 768 NAIC 5-6/ CCC and below 21 10 40 8 11 5 95 125 Amortized cost before allowance $ 38 $ 26 $ 72 $ 34 $ 581 $ 49 $ 800 $ 1,635 Allowance (52) (61) Amortized cost, net $ 748 $ 1,574 Rollforward of credit loss allowance for bank loans ($ in millions) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Beginning balance $ (56) $ (52) $ (61) $ (67) Net increases related to credit losses (2) (14) (18) (10) Reduction of allowance related to sales 6 2 27 13 Write-offs — — — — Ending balance (1) $ (52) $ (64) $ (52) $ (64) (1) Includes $7 million of credit loss allowance for bank loans that were classified as held for sale as of September 30, 2021. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Note 6 Fair Value of Assets and Liabilities Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Assets and liabilities recorded on the Condensed Consolidated Statements of Financial Position at fair value are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows: Level 1: Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company can access. Level 2: Assets and liabilities whose values are based on the following: (a) Quoted prices for similar assets or liabilities in active markets; (b) Quoted prices for identical or similar assets or liabilities in markets that are not active; or (c) Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability. Level 3: Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs reflect the Company’s estimates of the assumptions that market participants would use in valuing the assets and liabilities. The availability of observable inputs varies by instrument. In situations where fair value is based on internally developed pricing models or inputs that are unobservable in the market, the determination of fair value requires more judgment. The degree of judgment exercised by the Company in determining fair value is typically greatest for instruments categorized in Level 3. In many instances, valuation inputs used to measure fair value fall into different levels of the fair value hierarchy. The category level in the fair value hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company uses prices and inputs that are current as of the measurement date, including during periods of market disruption. In periods of market disruption, the ability to observe prices and inputs may be reduced for many instruments. The Company is responsible for the determination of fair value and the supporting assumptions and methodologies. The Company gains assurance that assets and liabilities are appropriately valued through the execution of various processes and controls designed to ensure the overall reasonableness and consistent application of valuation methodologies, including inputs and assumptions, and compliance with accounting standards. For fair values received from third parties or internally estimated, the Company’s processes and controls are designed to ensure that the valuation methodologies are appropriate and consistently applied, the inputs and assumptions are reasonable and consistent with the objective of determining fair value, and the fair values are accurately recorded. For example, on a continuing basis, the Company assesses the reasonableness of individual fair values that have stale security prices or that exceed certain thresholds as compared to previous fair values received from valuation service providers or brokers or derived from internal models. The Company performs procedures to understand and assess the methodologies, processes and controls of valuation service providers. In addition, the Company may validate the reasonableness of fair values by comparing information obtained from valuation service providers or brokers to other third-party valuation sources for selected securities. The Company performs ongoing price validation procedures such as back-testing of actual sales, which corroborate the various inputs used in internal models to market observable data. When fair value determinations are expected to be more variable, the Company validates them through reviews by members of management who have relevant expertise and who are independent of those charged with executing investment transactions. The Company has two types of situations where investments are classified as Level 3 in the fair value hierarchy: (1) Specific inputs significant to the fair value estimation models are not market observable. This primarily occurs in the Company’s use of broker quotes to value certain securities where the inputs have not been corroborated to be market observable, and the use of valuation models that use significant non-market observable inputs. (2) Quotes continue to be received from independent third-party valuation service providers and all significant inputs are market observable; however, there has been a significant decrease in the volume and level of activity for the asset when compared to normal market activity such that the degree of market observability has declined to a point where categorization as a Level 3 measurement is considered appropriate. The indicators considered in determining whether a significant decrease in the volume and level of activity for a specific asset has occurred include the level of new issuances in the primary market, trading volume in the secondary market, the level of credit spreads over historical levels, applicable bid-ask spreads, and price consensus among market participants and other pricing sources. Certain assets are not carried at fair value on a recurring basis, including mortgage loans, bank loans and policy loans and are only included in the fair value hierarchy disclosure when the individual investment is reported at fair value. In determining fair value, the Company principally uses the market approach which generally utilizes market transaction data for the same or similar instruments. To a lesser extent, the Company uses the income approach which involves determining fair values from discounted cash flow methodologies. For the majority of Level 2 and Level 3 valuations, a combination of the market and income approaches is used. Summary of significant inputs and valuation techniques for Level 2 and Level 3 assets and liabilities measured at fair value on a recurring basis Level 2 measurements • Fixed income securities: U.S. government and agencies, municipal, corporate - public and foreign government: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads. Corporate - privately placed: Privately placed are valued using a discounted cash flow model that is widely accepted in the financial services industry and uses market observable inputs and inputs derived principally from, or corroborated by, observable market data. The primary inputs to the discounted cash flow model include an interest rate yield curve, as well as published credit spreads for similar assets in markets that are not active that incorporate the credit quality and industry sector of the issuer. Corporate - privately placed also includes redeemable preferred stock that are valued using quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, underlying stock prices and credit spreads. ABS: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, collateral performance and credit spreads. Certain ABS are valued based on non-binding broker quotes whose inputs have been corroborated to be market observable. Residential MBS, included in ABS, use prepayment speeds as a primary input for valuation. • Equity securities: The primary inputs to the valuation include quoted prices or quoted net asset values for identical or similar assets in markets that are not active. • Short-term: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads. • Other investments: Free-standing exchange listed derivatives that are not actively traded are valued based on quoted prices for identical instruments in markets that are not active. Over-the-counter (“OTC”) derivatives, including interest rate swaps, foreign currency swaps, total return swaps, foreign exchange forward contracts, certain options and certain credit default swaps, are valued using models that rely on inputs such as interest rate yield curves, implied volatilities, index price levels, currency rates, and credit spreads that are observable for substantially the full term of the contract. The valuation techniques underlying the models are widely accepted in the financial services industry and do not involve significant judgment. Level 3 measurements • Fixed income securities: Municipal: Comprise municipal bonds that are not rated by third-party credit rating agencies. The primary inputs to the valuation of these municipal bonds include quoted prices for identical or similar assets that are not market observable, contractual cash flows, benchmark yields and credit spreads. Also included are municipal bonds valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable and municipal bonds in default valued based on the present value of expected cash flows. Corporate - public and privately placed and ABS: Primarily valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable. Other inputs for corporate fixed income securities include an interest rate yield curve, as well as published credit spreads for similar assets that incorporate the credit quality and industry sector of the issuer. • Equity securities: The primary inputs to the valuation include quoted prices or quoted net asset values for identical or similar assets that are not market observable. • Short-term: For certain short-term investments, amortized cost is used as the best estimate of fair value. • Other investments: Certain OTC derivatives, such as interest rate caps, certain credit default swaps and certain options (including swaptions), are valued using models that are widely accepted in the financial services industry. These are categorized as Level 3 as a result of the significance of non-market observable inputs such as volatility. Other primary inputs include interest rate yield curves and credit spreads, and quoted prices for identical or similar assets in markets that exhibit less liquidity relative to those markets supporting Level 2 fair value measurements. • Other assets: Includes the contingent consideration provision in the sale agreement for ALIC which meets the definition of a derivative. This derivative is valued internally using a model that includes stochastically determined cash flows and inputs that include spot and forward interest rates, volatility, corporate credit spreads and a liquidity discount. This derivative is categorized as Level 3 due to the significance of non-market observable inputs. • Assets held for sale: Comprise municipal, corporate and ABS fixed income securities and equity securities. The valuation is based on the respective asset type as described above. • Liabilities held for sale: Comprise derivatives embedded in certain life and annuity contracts which are valued internally using models widely accepted in the financial services industry that determine a single best estimate of fair value for the embedded derivatives within a block of contractholder liabilities. The models primarily use stochastically determined cash flows based on the contractual elements of embedded derivatives, projected option cost and applicable market data, such as interest rate yield curves and equity index volatility assumptions. These are categorized as Level 3 as a result of the significance of non-market observable inputs. Assets measured at fair value on a non-recurring basis Comprise long-lived assets to be disposed of by sale, including real estate, that are written down to fair value less costs to sell. Investments excluded from the fair value hierarchy Limited partnerships carried at fair value, which do not have readily determinable fair values, use NAV provided by the investees and are excluded from the fair value hierarchy. These investments are generally not redeemable by the investees and generally cannot be sold without approval of the general partner. The Company receives distributions of income and proceeds from the liquidation of the underlying assets of the investees, which usually takes place in years 4-9 of the typical contractual life of 10-12 years. As of September 30, 2022, the Company has commitments to invest $215 million in these limited partnership interests. Assets and liabilities measured at fair value September 30, 2022 ($ in millions) Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Counterparty and cash collateral netting Total Assets Fixed income securities: U.S. government and agencies $ 8,424 $ 20 $ — $ 8,444 Municipal — 6,010 19 6,029 Corporate - public — 16,751 68 16,819 Corporate - privately placed — 7,842 71 7,913 Foreign government — 890 — 890 ABS — 1,572 48 1,620 Total fixed income securities 8,424 33,085 206 41,715 Equity securities 4,092 304 327 4,723 Short-term investments 928 3,096 6 4,030 Other investments — 107 2 $ (59) 50 Other assets 14 — 104 118 Total recurring basis assets 13,458 36,592 645 (59) 50,636 Non-recurring basis — — 23 23 Total assets at fair value $ 13,458 $ 36,592 $ 668 $ (59) $ 50,659 % of total assets at fair value 26.6 % 72.2 % 1.3 % (0.1) % 100.0 % Investments reported at NAV 1,318 Total $ 51,977 Liabilities Other liabilities $ (9) $ (32) $ — $ (7) $ (48) Total recurring basis liabilities (9) (32) — (7) (48) Total liabilities at fair value $ (9) $ (32) $ — $ (7) $ (48) % of total liabilities at fair value 18.7 % 66.7 % — % 14.6 % 100.0 % Assets and liabilities measured at fair value December 31, 2021 ($ in millions) Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Counterparty and cash collateral netting Total Assets Fixed income securities: U.S. government and agencies $ 6,247 $ 26 $ — $ 6,273 Municipal — 6,375 18 6,393 Corporate - public — 16,569 20 16,589 Corporate - privately placed — 10,675 66 10,741 Foreign government — 985 — 985 ABS — 1,115 40 1,155 Total fixed income securities 6,247 35,745 144 42,136 Equity securities 6,312 400 349 7,061 Short-term investments 1,140 2,864 5 4,009 Other investments — 34 2 $ (22) 14 Other assets 1 — 65 66 Total recurring basis assets 13,700 39,043 565 (22) 53,286 Non-recurring basis — — 32 32 Total assets at fair value $ 13,700 $ 39,043 $ 597 $ (22) $ 53,318 % of total assets at fair value 25.7 % 73.2 % 1.1 % — % 100.0 % Investments reported at NAV 1,531 Total $ 54,849 Liabilities Other liabilities $ (3) $ (12) $ — $ 7 $ (8) Total recurring basis liabilities (3) (12) — 7 (8) Total liabilities at fair value $ (3) $ (12) $ — $ 7 $ (8) % of total liabilities at fair value 37.5 % 150.0 % — % (87.5) % 100.0 % Quantitative information about the significant unobservable inputs used in Level 3 fair value measurements (1) September 30, 2021 ($ in millions) Fair value Valuation Unobservable Range Weighted Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options $ (455) Stochastic cash flow model Projected option cost 1.0 - 4.2% 2.90% (1) These were included in the liabilities held for sale as of September 30, 2021. The embedded derivatives are equity-indexed and forward starting options in certain life and annuity products that provide customers with interest crediting rates based on the performance of the S&P 500. If the projected option cost increased (decreased), it would result in a higher (lower) liability fair value. These life and annuity products were included in the sales of ALIC, ALNY and certain affiliates. As of September 30, 2022 and December 31, 2021, Level 3 fair value measurements of fixed income securities total $206 million and $144 million, respectively, and include $70 million and $41 million, respectively, of securities valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable and $17 million and $16 million, respectively, of municipal fixed income securities that are not rated by third-party credit rating agencies. As the Company does not develop the Level 3 fair value unobservable inputs for these fixed income securities, they are not included in the table above. However, an increase (decrease) in credit spreads for fixed income securities valued based on non-binding broker quotes would result in a lower (higher) fair value, and an increase (decrease) in the credit rating of municipal bonds that are not rated by third-party credit rating agencies would result in a higher (lower) fair value. Rollforward of Level 3 assets and liabilities held at fair value during the three month period ended September 30, 2022 Balance as of Total gains (losses) included in: Transfers Balance as of ($ in millions) Net income OCI Into Level 3 Out of Level 3 Purchases Sales Issues Settlements Assets Fixed income securities: Municipal $ 18 $ — $ — $ 2 $ (1) $ — $ — $ — $ — $ 19 Corporate - public 77 — (2) — — — (7) — — 68 Corporate - privately placed 73 1 1 — — 18 (22) — — 71 ABS 18 — — — — 30 — — — 48 Total fixed income securities 186 1 (1) 2 (1) 48 (29) — — 206 Equity securities 372 (16) — — — 8 (37) — — 327 Short-term investments 8 — — — — — — — (2) 6 Other investments 2 — — — — — — — — 2 Other assets 108 (4) — — — — — — — 104 Total recurring Level 3 assets 676 (19) (1) 2 (1) 56 (66) — (2) 645 Liabilities Total recurring Level 3 liabilities $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Rollforward of Level 3 assets and liabilities held at fair value during the nine month period ended September 30, 2022 Balance as of Total gains (losses) included in: Transfers Balance as of ($ in millions) Net income OCI Into Level 3 Out of Level 3 Purchases Sales Issues Settlements Assets Fixed income securities: Municipal $ 18 $ — $ 1 $ 2 $ — $ — $ — $ — $ (2) $ 19 Corporate - public 20 — (6) — — 66 (10) — (2) 68 Corporate - privately placed 66 20 (1) — — 32 (46) — — 71 ABS 40 1 — — (28) 37 — — (2) 48 Total fixed income securities 144 21 (6) 2 (28) 135 (56) — (6) 206 Equity securities 349 13 — — — 10 (45) — — 327 Short-term investments 5 — — — — 23 — — (22) 6 Other investments 2 — — — — — — — — 2 Other assets 65 39 — — — — — — — 104 Total recurring Level 3 assets 565 73 (6) 2 (28) 168 (101) — (28) 645 Liabilities Total recurring Level 3 liabilities $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Rollforward of Level 3 assets and liabilities held at fair value during the three month period ended September 30, 2021 Balance as of Total gains (losses) included in: Transfers Transfers to (from) held for sale Balance as of ($ in millions) Net income OCI Into Level 3 Out of Level 3 Purchases Sales Issues Settlements Assets Fixed income securities: Municipal $ 18 $ — $ (1) $ — $ — $ — $ — $ — $ — $ — $ 17 Corporate - public 20 — — — — (1) — — — — 19 Corporate - privately placed 84 1 1 — (22) (2) 104 (7) — (5) 154 ABS 33 — — 1 — — 5 — — (30) 9 Total fixed income securities 155 1 — 1 (22) (3) 109 (7) — (35) 199 Equity securities 405 31 — — — — 27 (87) — — 376 Short-term investments — — — — — — 14 — — — 14 Other investments 3 — — — — — — (1) — — 2 Assets held for sale 164 1 — — (20) 3 — — — (2) 146 Total recurring Level 3 assets 727 33 — 1 (42) — 150 (95) — (37) 737 Liabilities Liabilities held for sale (490) 15 — — — — — — (9) 5 (479) Total recurring Level 3 liabilities $ (490) $ 15 $ — $ — $ — $ — $ — $ — $ (9) $ 5 $ (479) Rollforward of Level 3 assets and liabilities held at fair value during the nine month period ended September 30, 2021 Balance as of Total gains (losses) included in: Transfers Transfers to (from) held for sale Balance as of ($ in millions) Net income OCI Into Level 3 Out of Level 3 Purchases Sales Issues Settlements Assets Fixed income securities: Municipal $ 17 $ — $ — $ — $ — $ — $ 3 $ — $ — $ (3) $ 17 Corporate - public 67 1 (2) — — (7) 13 (53) — — 19 Corporate - privately placed 63 — 2 8 — 14 103 (31) — (5) 154 ABS 79 1 — — (32) — 57 (42) — (54) 9 Total fixed income securities 226 2 — 8 (32) 7 176 (126) — (62) 199 Equity securities 304 63 — — — 101 40 (132) — — 376 Short-term investments 35 — — — — — 14 — — (35) 14 Other investments — — — — — — 3 (1) — — 2 Assets held for sale 267 3 — 5 (13) (108) 3 (6) — (5) 146 Total recurring Level 3 assets 832 68 — 13 (45) — 236 (265) — (102) 737 Liabilities Liabilities held for sale (516) 46 — — — — — — (25) 16 (479) Total recurring Level 3 liabilities $ (516) $ 46 $ — $ — $ — $ — $ — $ — $ (25) $ 16 $ (479) Total Level 3 gains (losses) included in net income Three months ended September 30, Nine months ended September 30, ($ in millions) 2022 2021 2022 2021 Net investment income $ 4 $ 6 $ 17 $ (1) Net gains (losses) on investments and derivatives (23) 26 56 66 Transfers into Level 3 during the three and nine months ended September 30, 2022 and September 30, 2021 included situations where a quote was not provided by the Company’s independent third-party valuation service provider and as a result the price was stale or had been replaced with a broker quote where the inputs had not been corroborated to be market observable resulting in the security being classified as Level 3. Transfers out of Level 3 during the three and nine months ended September 30, 2022 and 2021 included situations where a broker quote was used in the prior period and a quote became available from the Company’s independent third-party valuation service provider in the current period. A quote utilizing the new pricing source was not available as of the prior period, and any gains or losses related to the change in valuation source for individual securities were not significant. Valuation changes included in net income and OCI for Level 3 assets and liabilities held as of September 30, ($ in millions) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Assets Municipal $ — $ 1 $ — $ — Corporate - privately placed 1 — 1 — Total fixed income securities 1 1 1 — Equity securities $ (16) $ 9 $ 11 $ 22 Other assets (4) — 39 — Assets held for sale — 1 — 3 Total recurring Level 3 assets $ (19) $ 11 $ 51 $ 25 Liabilities Liabilities held for sale $ — $ 15 $ — $ 46 Total recurring Level 3 liabilities — 15 — 46 Total included in net income $ (19) $ 26 $ 51 $ 71 Components of net income Net investment income $ 3 $ 6 $ 16 $ (1) Net gains (losses) on investments and derivatives (22) 4 35 23 Total included in net income $ (19) $ 10 $ 51 $ 22 Assets Municipal $ — $ (1) $ 1 $ — Corporate - public (3) — (6) (1) Corporate - privately placed (1) 1 (2) 1 Total recurring Level 3 assets $ (4) $ — $ (7) $ — Changes in unrealized net capital gains and losses reported in OCI $ (4) $ — $ (7) $ — Financial instruments not carried at fair value ($ in millions) September 30, 2022 December 31, 2021 Financial assets Fair value level Amortized cost, net Fair value Amortized cost, net Fair value Mortgage loans Level 3 $ 833 $ 779 $ 821 $ 853 Bank loans Level 3 748 738 1,574 1,634 Financial liabilities Fair value level Carrying value (1) Fair Carrying value (1) Fair value Contractholder funds on investment contracts Level 3 $ 52 $ 52 $ 55 $ 55 Long-term debt Level 2 7,967 7,383 7,976 9,150 Liability for collateral Level 2 2,201 2,201 1,444 1,444 (1) Represents the amounts reported on the Condensed Consolidated Statements of Financial Position. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 7 Derivative Financial Instruments The Company uses derivatives for risk reduction and to increase investment portfolio returns through asset replication. Risk reduction activity is focused on managing the risks with certain assets and liabilities arising from the potential adverse impacts from changes in risk-free interest rates, changes in equity market valuations, increases in credit spreads and foreign currency fluctuations. Asset replication refers to the “synthetic” creation of assets through the use of derivatives. The Company replicates fixed income securities using a combination of a credit default swap, index total return swap, options, or a foreign currency forward contract and one or more highly rated fixed income securities, primarily investment grade host bonds, to synthetically replicate the economic characteristics of one or more cash market securities. The Company replicates equity securities using futures, index total return swaps, and options to increase equity exposure. Property-Liability may use interest rate swaps, swaptions, futures and options to manage the interest rate risks of existing investments. These instruments are utilized to change the duration of the portfolio in order to offset the economic effect that interest rates would otherwise have on the fair value of its fixed income securities. Fixed income index total return swaps are used to offset valuation losses in the fixed income portfolio during periods of declining market values. Credit default swaps are typically used to mitigate the credit risk within the Property-Liability fixed income portfolio. Equity index total return swaps, futures and options are used by Property-Liability to offset valuation losses in the equity portfolio during periods of declining equity market values. In addition, equity futures are used to hedge the market risk related to deferred compensation liability contracts. Forward contracts are primarily used by Property-Liability to hedge foreign currency risk associated with holding foreign currency denominated investments and foreign operations. The Company also has derivatives embedded in non-derivative host contracts that are required to be separated from the host contracts and accounted for at fair value with changes in fair value of embedded derivatives reported in net income. When derivatives meet specific criteria, they may be designated as accounting hedges and accounted for as fair value, cash flow, foreign currency fair value or foreign currency cash flow hedges. The notional amounts specified in the contracts are used to calculate the exchange of contractual payments under the agreements and are generally not representative of the potential for gain or loss on these agreements. However, the notional amounts specified in credit default swaps where the Company has sold credit protection represent the maximum amount of potential loss, assuming no recoveries. Fair value, which is equal to the carrying value, is the estimated amount that the Company would receive or pay to terminate the derivative contracts at the reporting date. The carrying value amounts for OTC derivatives are further adjusted for the effects, if any, of enforceable master netting agreements and are presented on a net basis, by counterparty agreement, in the Condensed Consolidated Statements of Financial Position. For those derivatives which qualify and have been designated as fair value accounting hedges, net income includes the changes in the fair value of both the derivative instrument and the hedged risk. For cash flow hedges, gains and losses are amortized from AOCI and are reported in net income in the same period the forecasted transactions being hedged impact net income. Non-hedge accounting is generally used for “portfolio” level hedging strategies where the terms of the individual hedged items do not meet the strict homogeneity requirements to permit the application of hedge accounting. For non-hedge derivatives, net income includes changes in fair value and accrued periodic settlements, when applicable. With the exception of non-hedge derivatives used for asset replication and non-hedge embedded derivatives, all of the Company’s derivatives are evaluated for their ongoing effectiveness as either accounting hedge or non-hedge derivative financial instruments on at least a quarterly basis. In connection with the sale of ALIC and certain affiliates, the sale agreement includes a provision related to contingent consideration that may be earned over a ten-year period commencing on January 1, 2026 and ending January 1, 2035. The contingent consideration is determined annually based on the average 10-year Treasury rate over the preceding 3-year period compared to a designated rate. The contingent consideration meets the definition of a derivative and is accounted for on a fair value basis with periodic changes in fair value reflected in earnings. As of September 30, 2022, the Company recorded $104 million in other assets related to this derivative. For the three and nine months ended September 30, 2022, the Company recorded a loss of $4 million and a gain of $39 million, respectively, in operating costs and expenses related to valuation of this contingent consideration. Summary of the volume and fair value positions of derivative instruments as of September 30, 2022 ($ in millions, except number of contracts) Volume (1) Balance sheet location Notional amount Number of contracts Fair value, net Gross asset Gross liability Asset derivatives Derivatives not designated as accounting hedging instruments Interest rate contracts Futures Other assets n/a 45,626 $ 14 $ 14 $ — Equity and index contracts Options Other investments n/a 1,309 44 44 — Futures Other assets n/a 336 — — — Foreign currency contracts Foreign currency forwards Other investments $ 39 n/a (4) — (4) Embedded derivative financial instruments Other investments 750 n/a — — — Contingent consideration Other assets 250 n/a 104 104 — Credit default contracts Credit default swaps – buying protection Other investments 79 n/a 3 3 — Total asset derivatives $ 1,118 47,271 $ 161 $ 165 $ (4) Liability derivatives Derivatives not designated as accounting hedging instruments Interest rate contracts Futures Other liabilities & accrued expenses n/a 2,969 $ (1) $ — $ (1) Equity and index contracts Options Other liabilities & accrued expenses n/a 1,210 (16) — (16) Futures Other liabilities & accrued expenses n/a 3,674 (8) — (8) Foreign currency contracts Foreign currency forwards Other liabilities & accrued expenses $ 689 n/a 49 60 (11) Credit default contracts Credit default swaps – buying protection Other liabilities & accrued expenses 55 n/a (1) — (1) Total liability derivatives 744 7,853 23 $ 60 $ (37) Total derivatives $ 1,862 55,124 $ 184 (1) Volume for OTC and cleared derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable) Summary of the volume and fair value positions of derivative instruments as of December 31, 2021 ($ in millions, except number of contracts) Volume (1) Balance sheet location Notional amount Number of contracts Fair value, net Gross asset Gross liability Asset derivatives Derivatives not designated as accounting hedging instruments Interest rate contracts Futures Other assets n/a 1,181 $ 1 $ 1 $ — Equity and index contracts Options Other investments n/a 61 5 5 — Futures Other assets n/a 113 — — — Foreign currency contracts Foreign currency forwards Other investments $ 2 n/a — — — Embedded derivative financial instruments Other investments 750 n/a — — — Contingent consideration Other assets 250 n/a 65 65 — Credit default contracts Credit default swaps – buying protection Other investments 33 n/a (1) — (1) Credit default swaps – selling protection Other investments 250 n/a 6 6 — Total asset derivatives $ 1,285 1,355 $ 76 $ 77 $ (1) Liability derivatives Derivatives not designated as accounting hedging instruments Interest rate contracts Futures Other liabilities & accrued expenses n/a 36,668 $ (2) $ — $ (2) Equity and index contracts Futures Other liabilities & accrued expenses n/a 1,260 (1) — (1) Foreign currency contracts Foreign currency forwards Other liabilities & accrued expenses $ 715 n/a 16 23 (7) Credit default contracts Credit default swaps – buying protection Other liabilities & accrued expenses 70 n/a (4) — (4) Credit default swaps – selling protection Other liabilities & accrued expenses 5 n/a — — — Total liability derivatives 790 37,928 9 $ 23 $ (14) Total derivatives $ 2,075 39,283 $ 85 (1) Volume for OTC and cleared derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable) Gross and net amounts for OTC derivatives (1) ($ in millions) Offsets Gross amount Counter-party netting Cash collateral (received) pledged Net amount on balance sheet Securities collateral (received) pledged Net amount September 30, 2022 Asset derivatives $ 60 $ (64) $ 5 $ 1 $ — $ 1 Liability derivatives (16) 64 (71) (23) — (23) December 31, 2021 Asset derivatives $ 23 $ (24) $ 2 $ 1 $ — $ 1 Liability derivatives (10) 24 (17) (3) — (3) (1) All OTC derivatives are subject to enforceable master netting agreements. Gains (losses) from valuation and settlements reported on derivatives not designated as accounting hedges ($ in millions) Net gains (losses) on investments and derivatives Operating costs and expenses Total gain (loss) recognized in net income on derivatives Three months ended September 30, 2022 Interest rate contracts $ 260 $ — $ 260 Equity and index contracts 9 (8) 1 Contingent consideration — (4) (4) Foreign currency contracts 40 (6) 34 Credit default contracts (10) — (10) Other contracts — (1) (1) Total $ 299 $ (19) $ 280 Nine months ended September 30, 2022 Interest rate contracts $ 734 $ — $ 734 Equity and index contracts 65 (55) 10 Contingent consideration — 39 39 Foreign currency contracts 84 (8) 76 Credit default contracts 6 — 6 Other contracts — (1) (1) Total $ 889 $ (25) $ 864 Three months ended September 30, 2021 Interest rate contracts $ 18 $ — $ 18 Equity and index contracts 10 (3) 7 Foreign currency contracts 15 — 15 Credit default contracts 1 — 1 Total return swaps - fixed income 2 — 2 Total $ 46 $ (3) $ 43 Nine months ended September 30, 2021 Interest rate contracts $ 19 $ — $ 19 Equity and index contracts 2 27 29 Foreign currency contracts 23 — 23 Credit default contracts 6 — 6 Total return swaps - fixed income 4 — 4 Total $ 54 $ 27 $ 81 The Company manages its exposure to credit risk by utilizing highly rated counterparties, establishing risk control limits, executing legally enforceable master netting agreements (“MNAs”) and obtaining collateral where appropriate. The Company uses MNAs for OTC derivative transactions that permit either party to net payments due for transactions and collateral is either pledged or obtained when certain predetermined exposure limits are exceeded. OTC cash and securities collateral pledged ($ in millions) September 30, 2022 Pledged by the Company $ 5 Pledged to the Company (1) 71 (1) No collateral was posted under MNA’s for contracts containing credit-risk-contingent provisions that are in a liability provision. The Company has not incurred any losses on derivative financial instruments due to counterparty nonperformance. Other derivatives, including futures and certain option contracts, are traded on organized exchanges which require margin deposits and guarantee the execution of trades, thereby mitigating any potential credit risk. Counterparty credit exposure represents the Company’s potential loss if all of the counterparties concurrently fail to perform under the contractual terms of the contracts and all collateral, if any, becomes worthless. This exposure is measured by the fair value of OTC derivative contracts with a positive fair value at the reporting date reduced by the effect, if any, of legally enforceable master netting agreements. OTC derivatives counterparty credit exposure by counterparty credit rating ($ in millions) September 30, 2022 December 31, 2021 Rating (1) Number of Notional amount (2) Credit exposure (2) Exposure, net of collateral (2) Number of Notional amount (2) Credit exposure (2) Exposure, net of collateral (2) A+ 4 $ 500 $ 25 $ — 1 $ 199 $ 7 $ — A 1 232 24 — 1 367 9 — Total 5 $ 732 $ 49 $ — 2 $ 566 $ 16 $ — (1) Allstate uses the lower of S&P’s or Moody’s long-term debt issuer ratings. (2) Only OTC derivatives with a net positive fair value are included for each counterparty. For certain exchange traded and cleared derivatives, margin deposits are required as well as daily cash settlements of margin accounts. Exchange traded and cleared margin deposits ($ in millions) September 30, 2022 Pledged by the Company $ 162 Received by the Company 3 Market risk is the risk that the Company will incur losses due to adverse changes in market rates and prices. Market risk exists for all of the derivative financial instruments the Company currently holds, as these instruments may become less valuable due to adverse changes in market conditions. To limit this risk, the Company’s senior management has established risk control limits. In addition, changes in fair value of the derivative financial instruments that the Company uses for risk management purposes are generally offset by the change in the fair value or cash flows of the hedged risk component of the related assets, liabilities or forecasted transactions. Certain of the Company’s derivative transactions contain credit-risk-contingent termination events and cross-default provisions. Credit-risk-contingent termination events allow the counterparties to terminate the derivative agreement or a specific trade on certain dates if AIC’s financial strength credit ratings by Moody’s or S&P fall below a certain level. Credit-risk-contingent cross-default provisions allow the counterparties to terminate the derivative agreement if the Company defaults by pre-determined threshold amounts on certain debt instruments. The following table summarizes the fair value of derivative instruments with termination, cross-default or collateral credit-risk-contingent features that are in a liability position, as well as the fair value of assets and collateral that are netted against the liability in accordance with provisions within legally enforceable MNAs. ($ in millions) September 30, 2022 December 31, 2021 Gross liability fair value of contracts containing credit-risk-contingent features $ 11 $ 8 Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs (11) (7) Collateral posted under MNAs for contracts containing credit-risk-contingent features — — Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently $ — $ 1 Credit derivatives - selling protection A credit default swap (“CDS”) is a derivative instrument, representing an agreement between two parties to exchange the credit risk of a specified entity (or a group of entities), or an index based on the credit risk of a group of entities (all commonly referred to as the “reference entity” or a portfolio of “reference entities”), in return for a periodic premium. In selling protection, CDS are used to replicate fixed income securities and to complement the cash market when credit exposure to certain issuers is not available or when the derivative alternative is less expensive than the cash market alternative. CDS typically have a five-year term. As of September 30, 2022, there were no open CDS positions. CDS notional amounts by credit rating and fair value of protection sold ($ in millions) Notional amount AAA AA A BBB BB and lower Total Fair value December 31, 2021 Single name Corporate debt $ — $ — $ — $ — $ 5 $ 5 $ — Index Corporate debt 2 4 46 190 8 250 6 Total $ 2 $ 4 $ 46 $ 190 $ 13 $ 255 $ 6 In selling protection with CDS, the Company sells credit protection on an identified single name, a basket of names in a first-to-default (“FTD”) structure or credit derivative index (“CDX”) that is generally investment grade, and in return receives periodic premiums through expiration or termination of the agreement. With single name CDS, this premium or credit spread generally corresponds to the difference between the yield on the reference entity’s public fixed maturity cash instruments and swap rates at the time the agreement is executed. With a FTD basket, because of the additional credit risk inherent in a basket of named reference entities, the premium generally corresponds to a high proportion of the sum of the credit spreads of the names in the basket and the correlation between the names. CDX is utilized to take a position on multiple (generally 125) reference entities. Credit events are typically defined as bankruptcy, failure to pay, or restructuring, depending on the nature of the reference entities. If a credit event occurs, the Company settles with the counterparty, either through physical settlement or cash settlement. In a physical settlement, a reference asset is delivered by the buyer of protection to the Company, in exchange for cash payment at par, whereas in a cash settlement, the Company pays the difference between par and the prescribed value of the reference asset. When a credit event occurs in a single name or FTD basket (for FTD, the first credit event occurring for any one name in the basket), the contract terminates at the time of settlement. For CDX, the reference entity’s name incurring the credit event is removed from the index while the contract continues until expiration. The maximum payout on a CDS is the contract notional amount. A physical settlement may afford the Company with recovery rights as the new owner of the asset. The Company monitors risk associated with credit derivatives through individual name credit limits at both a credit derivative and a combined cash instrument/credit derivative level. The ratings of individual names for which protection has been sold are also monitored. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Note 8 Variable Interest Entities Consolidated VIEs, of which the Company is the primary beneficiary, primarily include Adirondack Insurance Exchange, a New York reciprocal insurer, and New Jersey Skylands Insurance Association, a New Jersey reciprocal insurer (together “Reciprocal Exchanges”). The Reciprocal Exchanges are insurance carriers organized as unincorporated associations. The Company does not own the equity of the Reciprocal Exchanges, which is owned by their respective policyholders. The Company manages the business operations of the Reciprocal Exchanges and has the power to direct their activities that most significantly impact their economic performance. The Company receives a management fee for the services provided to the Reciprocal Exchanges. In addition, as of September 30, 2022 and December 31, 2021, the Company holds interests of $123 million in the form of surplus notes included in other liabilities and expenses on the Statement of Assets and Liabilities of the Reciprocal Exchanges that provide capital to the Reciprocal Exchanges and would absorb any expected losses. The Company is therefore the primary beneficiary. In the event of dissolution, policyholders would share any residual unassigned surplus but are not subject to assessment for any deficit in unassigned surplus of the Reciprocal Exchanges. The assets of the Reciprocal Exchanges can be used only to settle the obligations of the Reciprocal Exchanges and general creditors have no recourse to the Company. The results of operations of the Reciprocal Exchanges are included in the Company’s Allstate Protection segment and generated $39 million and $122 million of earned premiums for the three and nine months ended September 30, 2022, respectively, compared to $47 million and $137 million for the three and nine months ended September 30, 2021, respectively. Claims and claims expenses were $31 million and $91 million for the three and nine months ended September 30, 2022, respectively, compared to $38 million and $105 million for the three and nine months ended September 30, 2021, respectively. Assets and liabilities of Reciprocal Exchanges ($ in millions) September 30, 2022 December 31, 2021 Assets Fixed income securities $ 302 $ 324 Short-term investments 12 30 Deferred policy acquisition costs 20 15 Premium installment and other receivables, net 41 42 Reinsurance recoverables, net 119 114 Other assets 89 82 Total assets 583 607 Liabilities Reserve for property and casualty insurance claims and claims expense 200 226 Unearned premiums 174 175 Other liabilities and expenses 327 265 Total liabilities $ 701 $ 666 |
Reserve for Property and Casual
Reserve for Property and Casualty Insurance Claims and Claims Expense | 9 Months Ended |
Sep. 30, 2022 | |
Reserve for Property-Liability Insurance Claims and Claims Expense [Abstract] | |
Reserve for Property and Liability Insurance Claims and Claims Expense | Note 9 Reserve for Property and Casualty Insurance Claims and Claims Expense The Company establishes reserves for claims and claims expense on reported and unreported claims of insured losses. The Company’s reserving process takes into account known facts and interpretations of circumstances and factors including the Company’s experience with similar cases, actual claims paid, historical trends involving claim payment patterns and pending levels of unpaid claims, loss management programs, product mix and contractual terms, changes in law and regulation, judicial decisions, and economic conditions. When the Company experiences changes in the mix or type of claims or changing claim settlement patterns, it applies actuarial judgment in the determination and selection of development factors to be more reflective of the new trends. For example, the Coronavirus has had a significant impact on driving patterns and auto frequency. Supply chain disruptions have resulted in higher parts costs, used car values and longer time to claim resolution, which have combined with labor shortages to increase physical damage loss costs. Medical inflation, treatment trends, attorney representation, litigation costs and more severe accidents have contributed to higher third-party bodily injury loss costs. These factors may lead to historical development trends being less predictive of future loss development, potentially creating additional reserve variability. Generally, the initial reserves for a new accident year are established based on actual claim frequency and severity assumptions for different business segments, lines and coverages based on historical relationships to relevant inflation indicators. Reserves for prior accident years are statistically determined using several different actuarial estimation methods. Changes in auto claim frequency may result from changes in mix of business, driving behaviors, miles driven or other macroeconomic factors. Changes in auto current year claim severity are generally influenced by inflation in the medical and auto repair sectors, the effectiveness and efficiency of claim practices and changes in mix of claim types. The Company mitigates these effects through various loss management programs. When such changes in claim data occur, actuarial judgment is used to determine appropriate development factors to establish reserves. As part of the reserving process, the Company may also supplement its claims processes by utilizing third-party adjusters, appraisers, engineers, inspectors, and other professionals and information sources to assess and settle catastrophe and non-catastrophe related claims. The effects of inflation are implicitly considered in the reserving process. Because reserves are estimates of unpaid portions of losses that have occurred, including incurred but not reported (“IBNR”) losses, the establishment of appropriate reserves, including reserves for catastrophes, Run-off Property-Liability and reinsurance and indemnification recoverables, is an inherently uncertain and complex process. The ultimate cost of losses may vary materially from recorded amounts, which are based on management’s best estimates. The highest degree of uncertainty is associated with reserves for losses incurred in the initial reporting period as it contains the greatest proportion of losses that have not been reported or settled as well as heightened uncertainty for claims that involve litigation or take longer to settle during periods of rapidly increasing loss costs. The Company also has uncertainty in the Run-off Property-Liability reserves that are based on events long since passed and are complicated by lack of historical data, legal interpretations, unresolved legal issues and legislative intent based on establishment of facts. The Company regularly updates its reserve estimates as new information becomes available and as events unfold that may affect the resolution of unsettled claims. Changes in reserve estimates, which may be material, are reported in property and casualty insurance claims and claims expense in the Condensed Consolidated Statements of Operations in the period such changes are determined. Management believes that the reserve for property and casualty insurance claims and claims expense, net of recoverables, is appropriately established in the aggregate and adequate to cover the ultimate net cost of reported and unreported claims arising from losses which had occurred by the date of the Condensed Consolidated Statements of Financial Position based on available facts, laws and regulations. Rollforward of the reserve for property and casualty insurance claims and claims expense Nine months ended September 30, ($ in millions) 2022 2021 Balance as of January 1 $ 33,060 $ 27,610 Less recoverables (1) (9,479) (7,033) Net balance as of January 1 23,581 20,577 National General acquisition as of January 4, 2021 — 1,797 Incurred claims and claims expense related to: Current year 25,792 21,579 Prior years 1,470 (65) Total incurred 27,262 21,514 Claims and claims expense paid related to: Current year (14,020) (12,539) Prior years (9,850) (8,098) Total paid (23,870) (20,637) Net balance as of September 30 26,973 23,251 Plus recoverables 9,556 10,035 Balance as of September 30 $ 36,529 $ 33,286 (1) Recoverables comprises reinsurance and indemnification recoverables. Incurred claims and claims expense represents the sum of paid losses, claim adjustment expenses and reserve changes in the period. This expense included losses from catastrophes of $2.33 billion and $2.81 billion in the nine months ended September 30, 2022 and 2021, respectively, net of recoverables. Catastrophes are an inherent risk of the property and casualty insurance business that have contributed to, and will continue to contribute to, material year-to-year fluctuations in the Company’s results of operations and financial position. Prior year reserve reestimates included in claims and claims expense (1) Non-catastrophe losses Catastrophe losses Total ($ in millions) 2022 2021 2022 2021 (2) (3) 2022 2021 Three months ended September 30, Auto $ 643 $ 77 $ (11) $ (5) $ 632 $ 72 Homeowners 51 14 4 3 55 17 Other personal lines (2) (66) (3) — (5) (66) Commercial lines 63 24 1 1 64 25 Run-off Property-Liability (4) 120 113 — — 120 113 Protection Services — — — — — — Total prior year reserve reestimates $ 875 $ 162 $ (9) $ (1) $ 866 $ 161 Nine months ended September 30, Auto $ 1,069 $ 31 $ (58) $ (28) $ 1,011 $ 3 Homeowners 95 12 82 (168) 177 (156) Other personal lines (18) (69) 4 (14) (14) (83) Commercial lines 174 55 1 3 175 58 Run-off Property-Liability (4) 124 115 — — 124 115 Protection Services (3) (2) — — (3) (2) Total prior year reserve reestimates $ 1,441 $ 142 $ 29 $ (207) $ 1,470 $ (65) (1) Favorable reserve reestimates are shown in parentheses. (2) Included approximately $40 million and $240 million of estimated recoveries related to Nationwide Aggregate Reinsurance Program cover for aggregate catastrophe losses occurring between April 1, 2020 and December 31, 2020, for the three and nine months ended 2021, respectively, which primarily impacted homeowners reestimates. (3) Included approximately $110 million favorable subrogation settlements arising from the Woolsey wildfire, which primarily impacted homeowners reestimates, for the nine months ended 2021. (4) The Company’s 2022 and 2021 annual reserve reviews, using established industry and actuarial practices, resulted in unfavorable reestimates of $118 million and $111 million, respectively . Unfavorable reserve reestimates for personal auto are primarily from bodily injury and physical damage coverages. Increases in injury coverages reflect recent data and updated assumptions related to severity of third-party bodily injury claims, increased claims with attorney representation, litigation costs and higher medical inflation. Increases in physical damage reflect the ongoing inflationary factors and supply chain shortages impacting used vehicle and parts prices, labor rates and length of claim resolution. Delays in the receipt of third-party carrier claims also contributed to the adverse development of claims reported in prior years. |
Reinsurance and Indemnification
Reinsurance and Indemnification | 9 Months Ended |
Sep. 30, 2022 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance and Indemnification | Note 10 Reinsurance and Indemnification Effects of reinsurance ceded and indemnification programs on property and casualty premiums earned and accident and health insurance premiums and contract charges ($ in millions) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Property and casualty insurance premiums earned $ (479) $ (442) $ (1,362) $ (1,488) Accident and health insurance premiums and contract charges (12) (17) (29) (65) Effects of reinsurance ceded and indemnification programs on property and casualty insurance claims and claims expense and accident, health and other policy benefits ($ in millions) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Property and casualty insurance claims and claims expense (1) (2) $ (925) $ (1,458) $ (1,300) $ (3,209) Accident, health and other policy benefits (5) (13) (21) (68) (1) Ceded losses incurred included $100 million and $525 million related to the Michigan Catastrophic Claims Association for the nine months ended September 30, 2022 and 2021, respectively, and $305 million of expected reinsurance recoveries related to the Florida Excess Catastrophe Reinsurance Program for Hurricane Ian for the three and nine months ended September 30, 2022. (2) Included approximately $1.40 billion and $185 million of ceded losses related to the Nationwide Catastrophe Reinsurance Program and the National Flood Insurance Program, respectively, for the nine months ended September 30, 2021. Reinsurance and indemnification recoverables Reinsurance and indemnification recoverables, net ($ in millions) September 30, 2022 December 31, 2021 Property and casualty Paid and due from reinsurers and indemnitors $ 264 $ 391 Unpaid losses estimated (including IBNR) 9,556 9,479 Total property and casualty $ 9,820 $ 9,870 Accident and health insurance 141 154 Total $ 9,961 $ 10,024 Rollforward of credit loss allowance for reinsurance recoverables ($ in millions) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Property and casualty (1) (2) Beginning balance $ (66) $ (60) $ (66) $ (59) Increase in the provision for credit losses (5) (6) (5) (7) Write-offs 9 — 9 — Ending balance $ (62) $ (66) $ (62) $ (66) Accident and health insurance Beginning balance $ (8) $ (1) $ (8) $ (1) Increase in the provision for credit losses — — — — Write-offs — — — — Ending balance $ (8) $ (1) $ (8) $ (1) (1) Primarily related to Run-off Property-Liability reinsurance ceded. (2) Indemnification recoverables are considered collectible based on the industry pool and facility enabling legislation. |
Company Restructuring
Company Restructuring | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Company Restructuring | Note 11 Company Restructuring The Company undertakes various programs to reduce expenses. These programs generally involve a reduction in staffing levels, and in certain cases, office closures. Restructuring and related charges primarily include the following costs related to these programs: • Employee - severance and relocation benefits • Exit - contract termination penalties and real estate costs primarily related to accelerated amortization of right-of-use assets and related leasehold improvements at facilities to be vacated The expenses related to these activities are included in the Condensed Consolidated Statements of Operations as restructuring and related charges and totaled $14 million and $23 million during the three months ended September 30, 2022 and 2021, respectively, and $27 million and $145 million during the nine months ended September 30, 2022 and 2021, respectively. Restructuring expenses during the third quarter and first nine months of 2022 are primarily due to the future work environment and employee costs. The Company continues to identify ways to improve operating efficiency and reduce cost which may result in additional restructuring charges in the future. Future work environment ($ in millions) Expected program charges $ 110 2021 expenses (131) 2022 expenses (13) Change in estimated program costs 44 Remaining program charges $ 10 These charges are primarily recorded in the Allstate Protection segment. Exit costs of this program reflect real estate costs primarily related to accelerated amortization of right-of-use assets and related leasehold improvements at facilities to be vacated. The Company expects that the majority of these actions will be completed in 2022. Restructuring activity during the period ($ in millions) Employee costs Exit costs Total liability Restructuring liability as of December 31, 2021 $ 14 $ 7 $ 21 Expense incurred 18 17 35 Adjustments to liability (8) — (8) Payments and non-cash charges (6) (17) (23) Restructuring liability as of September 30, 2022 $ 18 $ 7 $ 25 |
Guarantees and Contingent Liabi
Guarantees and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Guarantees and Contingent Liabilities | |
Guarantees and Contingent Liabilities | Note 12 Guarantees and Contingent Liabilities Shared markets and state facility assessments The Company is required to participate in assigned risk plans, reinsurance facilities and joint underwriting associations in various states that provide insurance coverage to individuals or entities that otherwise are unable to purchase such coverage from private insurers. The Company routinely reviews its exposure to assessments from these plans, facilities and government programs. Underwriting results related to these arrangements, which tend to be adverse, have been immaterial to the Company’s results of operations in the last two years. Because of the Company’s participation, it may be exposed to losses that surpass the capitalization of these facilities or assessments from these facilities. Guarantees In the normal course of business, the Company provides standard indemnifications to contractual counterparties in connection with numerous transactions, including acquisitions and divestitures. The types of indemnifications typically provided include indemnifications for breaches of representations and warranties, taxes and certain other liabilities, such as third-party lawsuits. The indemnification clauses are often standard contractual terms and are entered into in the normal course of business based on an assessment that the risk of loss would be remote. The terms of the indemnifications vary in duration and nature. In many cases, the maximum obligation is not explicitly stated and the contingencies triggering the obligation to indemnify have not occurred and are not expected to occur. Consequently, the maximum amount of the obligation under such indemnifications is not determinable. Historically, the Company has not made any material payments pursuant to these obligations. Related to the sale of ALNY on October 1, 2021, AIC agreed to indemnify Wilton Reassurance Company in connection with certain representations, warranties and covenants of AIC, and certain liabilities specifically excluded from the transaction, subject to specific contractual limitations regarding AIC’s maximum obligation. Management does not believe these indemnifications will have a material effect on results of operations, cash flows or financial position of the Company. Related to the sale of ALIC and Allstate Assurance Company on November 1, 2021, AIC and Allstate Financial Insurance Holdings Corporation (collectively, the “Sellers”) agreed to indemnify Everlake US Holdings Company in connection with certain representations, warranties and covenants of the Sellers, and certain liabilities specifically excluded from the transaction, subject to specific contractual limitations regarding the Sellers’ maximum obligation. Management does not believe these indemnifications will have a material effect on results of operations, cash flows or financial position of the Company. The aggregate liability balance related to all guarantees was not material as of September 30, 2022. Regulation and compliance The Company is subject to extensive laws, regulations, administrative directives, and regulatory actions. From time to time, regulatory authorities or legislative bodies seek to influence and restrict premium rates, require premium refunds to policyholders, require reinstatement of terminated policies, prescribe rules or guidelines on how affiliates compete in the marketplace, restrict the ability of insurers to cancel or non-renew policies, require insurers to continue to write new policies or limit their ability to write new policies, limit insurers’ ability to change coverage terms or to impose underwriting standards, impose additional regulations regarding agency and broker compensation, regulate the nature of and amount of investments, impose fines and penalties for unintended errors or mistakes, impose additional regulations regarding cybersecurity and privacy, and otherwise expand overall regulation of insurance products and the insurance industry. In addition, the Company is subject to laws and regulations administered and enforced by federal agencies, international agencies, and other organizations, including but not limited to the Securities and Exchange Commission (“SEC”), the Financial Industry Regulatory Authority, the U.S. Equal Employment Opportunity Commission, and the U.S. Department of Justice. The Company has established procedures and policies to facilitate compliance with laws and regulations, to foster prudent business operations, and to support financial reporting. The Company routinely reviews its practices to validate compliance with laws and regulations and with internal procedures and policies. As a result of these reviews, from time to time the Company may decide to modify some of its procedures and policies. Such modifications, and the reviews that led to them, may be accompanied by payments being made and costs being incurred. The ultimate changes and eventual effects of these actions on the Company’s business, if any, are uncertain. Legal and regulatory proceedings and inquiries The Company and certain subsidiaries are involved in a number of lawsuits, regulatory inquiries, and other legal proceedings arising out of various aspects of its business. Background These matters raise difficult and complicated factual and legal issues and are subject to many uncertainties and complexities, including the underlying facts of each matter; novel legal issues; variations between jurisdictions in which matters are being litigated, heard, or investigated; changes in assigned judges; differences or developments in applicable laws and judicial interpretations; judges reconsidering prior rulings; the length of time before many of these matters might be resolved by settlement, through litigation, or otherwise; adjustments with respect to anticipated trial schedules and other proceedings; developments in similar actions against other companies; the fact that some of the lawsuits are putative class actions in which a class has not been certified and in which the purported class may not be clearly defined; the fact that some of the lawsuits involve multi-state class actions in which the applicable law(s) for the claims at issue is in dispute and therefore unclear; and the challenging legal environment faced by corporations and insurance companies. The outcome of these matters may be affected by decisions, verdicts, and settlements, and the timing of such decisions, verdicts, and settlements, in other individual and class action lawsuits that involve the Company, other insurers, or other entities and by other legal, governmental, and regulatory actions that involve the Company, other insurers, or other entities. The outcome may also be affected by future state or federal legislation, the timing or substance of which cannot be predicted. In the lawsuits, plaintiffs seek a variety of remedies which may include equitable relief in the form of injunctive and other remedies and monetary relief in the form of contractual and extra-contractual damages. In some cases, the monetary damages sought may include punitive or treble damages. Often specific information about the relief sought, such as the amount of damages, is not available because plaintiffs have not requested specific relief in their pleadings. When specific monetary demands are made, they are often set just below a state court jurisdictional limit in order to seek the maximum amount available in state court, regardless of the specifics of the case, while still avoiding the risk of removal to federal court. In Allstate’s experience, monetary demands in pleadings bear little relation to the ultimate loss, if any, to the Company. In connection with regulatory examinations and proceedings, government authorities may seek various forms of relief, including penalties, restitution, and changes in business practices. The Company may not be advised of the nature and extent of relief sought until the final stages of the examination or proceeding. Accrual and disclosure policy The Company reviews its lawsuits, regulatory inquiries, and other legal proceedings on an ongoing basis and follows appropriate accounting guidance when making accrual and disclosure decisions. The Company establishes accruals for such matters at management’s best estimate when the Company assesses that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company does not establish accruals for such matters when the Company does not believe both that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company’s assessment of whether a loss is reasonably possible or probable is based on its assessment of the ultimate outcome of the matter following all appeals. The Company does not include potential recoveries in its estimates of reasonably possible or probable losses. Legal fees are expensed as incurred. The Company continues to monitor its lawsuits, regulatory inquiries, and other legal proceedings for further developments that would make the loss contingency both probable and estimable, and accordingly accruable, or that could affect the amount of accruals that have been previously established. There may continue to be exposure to loss in excess of any amount accrued. Disclosure of the nature and amount of an accrual is made when there have been sufficient legal and factual developments such that the Company’s ability to resolve the matter would not be impaired by the disclosure of the amount of accrual. When the Company assesses it is reasonably possible or probable that a loss has been incurred, it discloses the matter. When it is possible to estimate the reasonably possible loss or range of loss above the amount accrued, if any, for the matters disclosed, that estimate is aggregated and disclosed. Disclosure is not required when an estimate of the reasonably possible loss or range of loss cannot be made. For certain of the matters described below in the “Claims related proceedings” and “Other proceedings” subsections, the Company is able to estimate the reasonably possible loss or range of loss above the amount accrued, if any. In determining whether it is possible to estimate the reasonably possible loss or range of loss, the Company reviews and evaluates the disclosed matters, in conjunction with counsel, in light of potentially relevant factual and legal developments. These developments may include information learned through the discovery process, rulings on dispositive motions, settlement discussions, information obtained from other sources, experience from managing these and other matters, and other rulings by courts, arbitrators or others. When the Company possesses sufficient appropriate information to develop an estimate of the reasonably possible loss or range of loss above the amount accrued, if any, that estimate is aggregated and disclosed below. There may be other disclosed matters for which a loss is probable or reasonably possible, but such an estimate is not possible. Disclosure of the estimate of the reasonably possible loss or range of loss above the amount accrued, if any, for any individual matter would only be considered when there have been sufficient legal and factual developments such that the Company’s ability to resolve the matter would not be impaired by the disclosure of the individual estimate. The Company currently estimates that the aggregate range of reasonably possible loss in excess of the amount accrued, if any, for the disclosed matters where such an estimate is possible is zero to $178 million, pre-tax. This disclosure is not an indication of expected loss, if any. Under accounting guidance, an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely” and an event is “remote” if “the chance of the future event or events occurring is slight.” This estimate is based upon currently available information and is subject to significant judgment and a variety of assumptions and known and unknown uncertainties. The matters underlying the estimate will change from time to time, and actual results may vary significantly from the current estimate. The estimate does not include matters or losses for which an estimate is not possible. Therefore, this estimate represents an estimate of possible loss only for certain matters meeting these criteria. It does not represent the Company’s maximum possible loss exposure. Information is provided below regarding the nature of all of the disclosed matters and, where specified, the amount, if any, of plaintiff claims associated with these loss contingencies. Due to the complexity and scope of the matters disclosed in the “Claims related proceedings” and “Other proceedings” subsections below and the many uncertainties that exist, the ultimate outcome of these matters cannot be predicted and in the Company’s judgment, a loss, in excess of amounts accrued, if any, is not probable. In the event of an unfavorable outcome in one or more of these matters, the ultimate liability may be in excess of amounts currently accrued, if any, and may be material to the Company’s operating results or cash flows for a particular quarterly or annual period. However, based on information currently known to it, management believes that the ultimate outcome of all matters described below, as they are resolved over time, is not likely to have a material effect on the financial position of the Company. Claims related proceedings The Company is managing various disputes in Florida that raise challenges to the Company’s practices, processes, and procedures relating to claims for personal injury protection benefits under Florida auto policies. Medical providers continue to pursue litigation under various theories that challenge the amounts that the Company pays under the personal injury protection coverage, seeking additional benefit payments, as well as applicable interest, penalties and fees. There is a pending putative class action, Revival Chiropractic v. Allstate Insurance Company, et al. (M.D. Fla., filed January 2019; appeal pending, 11th Circuit Court of Appeals), where the federal district court denied class certification and plaintiff’s request to file a renewed motion for class certification. In Revival , on June 2, 2022, the 11 th Circuit certified to the Florida Supreme Court Allstate’s appeal of the federal district court’s interpretation of the state personal injury protection statute. The 11 th Circuit is holding determination on plaintiff’s class certification appeal pending the outcome of the Florida Supreme Court certification. The Company is also defending litigation involving individual plaintiffs. The Company is defending putative class actions in various courts that raise challenges to the Company’s depreciation practices in homeowner property claims. In these lawsuits, plaintiffs generally allege that, when calculating actual cash value, the costs of “non-materials” such as labor, general contractor’s overhead and profit, and sales tax should not be subject to depreciation. The Company is currently defending the following lawsuits on this issue: Perry v. Allstate Indemnity Company, et al. (N.D. Ohio, filed May 2016); Lado v. Allstate Vehicle and Property Insurance Company (S.D. Ohio, filed March 2020); Maniaci v. Allstate Insurance Company (N.D. Ohio, filed March 2020); Ferguson-Luke et al. v. Allstate Property and Casualty Insurance Company (N.D. Ohio, filed April 2020); Clark v. Allstate Vehicle and Property Insurance Company (Circuit Court of Independence Co., Ark., filed February 2016); Mitchell, et al. v. Allstate Vehicle and Property Insurance Company, et al . (S.D. Ala., filed August 2021); Sims, et al. v. Allstate Fire and Casualty Insurance Company, et al. (W.D. Tex. filed June 2022); and Thompson, et al. v. Allstate Insurance Company (Circuit Court of Cole Co., Mo. filed June 2022). No classes have been certified in any of these matters. A settlement-in-principle has been reached in Thaxton v. Allstate Indemnity Company (Madison Co., Ill., filed July 2020) and Hester v. Allstate Vehicle and Property Insurance Company (St. Clair Co., Ill. filed June 2020). The Company is defending putative class actions pending in multiple states alleging that the Company underpays total loss vehicle physical damage claims on auto policies. The allegedly systematic underpayments result from one or more of the following theories: (a) the third party valuation tool used by the Company as part of a comprehensive adjustment process is allegedly flawed, biased, or contrary to applicable law; (b) the Company allegedly does not pay sales tax, title fees, registration fees, and/or other specified fees that are allegedly mandatory under policy language or state legal authority; or (c) after paying for the value of the loss vehicle, then the Company allegedly is not entitled to retain the residual salvage value, and the Company allegedly must pay salvage value to the owner (or if the loss vehicle is retained by the owner, then the Company allegedly may not apply any offset for the salvage value). The following cases are currently pending against the Company: Olberg v. Allstate Insurance Company, Allstate Fire and Casualty Insurance Company, and CCC Information Services, Inc . (W.D. Wash., filed April 2018); Bloomgarden v. Allstate Fire and Casualty Insurance Company (S.D. Fla., filed July 2018, dismissed August 2019, refiled on September 2019, remanded to 17th Judicial Circuit, Broward Co. October 2020); Erby v. Allstate Fire and Casualty Insurance Company (E.D. Pa., filed October 2018); Kronenberg v. Allstate Insurance Company and Allstate Fire and Casualty Insurance Company (E.D.N.Y., filed December 2018); Durgin v. Allstate Property and Casualty Insurance Company (W.D. La., filed June 2019); Williams v. Esurance Property and Casualty Insurance Company (C.D. Cal., filed September 2020); Cotton v. Allstate Fire and Casualty Insurance Company (Cir. Ct. of Cook Co. Ill., Chancery Div., filed October 2020); Romaniak v. Esurance Property and Casualty Insurance Company (N.D. Ohio, filed December 2020); Rawlins v. Esurance Property and Casualty Insurance Company (E.D. Mo., filed February 2021); Bass v. Imperial Fire and Casualty Insurance Company (W.D. La., filed February 2022); Cummings v. Allstate Property and Casualty Insurance Company (M.D. La., filed April 2022); Slaughter v. Esurance Property and Casualty Insurance Company (Cir. Ct. of Cook Co, Ill., Chancery Div., filed September 2022); Kanak v. Allstate Fire and Casualty Insurance Company (Cir. Ct. of Cook Co., Ill., Chancery Div., filed September 2022). None of the courts in any of the pending matters has ruled on class certification. Other proceedings The Company is defending against an investigatory hearing before the California Insurance Commissioner concerning the private passenger automobile insurance rating practices of Allstate Insurance Company and Allstate Indemnity Company in California. The investigatory hearing is captioned: In the Matter of the Rating Practices of Allstate Insurance Company and Allstate Indemnity Company. Pursuant to the Notice of Hearing issued by the California Insurance Commissioner, the California Insurance Commissioner is investigating: (1) whether Allstate has potentially violated California insurance law by using illegal price optimization; (2) how Allstate implemented any such potentially illegal price optimization in its private passenger auto insurance rates and/or class plans; and (3) how such potentially illegal price optimization impacted Allstate’s private passenger auto insurance policyholders. Fact discovery has been completed in the investigatory hearing. The hearing is expected to be set for a date in December 2022. In re The Allstate Corp. Securities Litigation is a certified class action filed on November 11, 2016 in the United States District Court for the Northern District of Illinois against the Company and two of its officers asserting claims under the federal securities laws. Plaintiffs allege that they purchased Allstate common stock during the class period and suffered damages as the result of the conduct alleged. Plaintiffs seek an unspecified amount of damages, costs, attorney’s fees, and other relief as the court deems appropriate. Plaintiffs allege that the Company and certain senior officers made allegedly material misstatements or omissions concerning claim frequency statistics and the reasons for a claim frequency increase for Allstate brand auto insurance between October 2014 and August 3, 2015. Plaintiffs further allege that a senior officer engaged in stock option exercises during that time allegedly while in possession of material nonpublic information about Allstate brand auto insurance claim frequency. The Company, its chairman, president and chief executive officer, and its former president are the named defendants. After the court denied their motion to dismiss on February 27, 2018, defendants answered the complaint, denying plaintiffs’ allegations that there was any misstatement or omission or other misconduct. On June 22, 2018, plaintiffs filed their motion for class certification. The court allowed the lead plaintiffs to amend their complaint to add the City of Providence Employee Retirement System as a proposed class representative and on September 12, 2018, the amended complaint was filed. A class was certified on March 26, 2019, vacated by the U.S. Court of Appeals for the Seventh Circuit on July 16, 2020 and remanded for further consideration by the district court. On December 21, 2020, the district court again granted plaintiffs’ motion for class certification and certified a class consisting of all persons who purchased Allstate common stock between October 29, 2014 and August 3, 2015. Defendants’ petition for permission to appeal this ruling was denied on January 28, 2021. Following the close of discovery defendants moved for summary judgment on March 23, 2022. On July 26, 2022 the court entered its order granting summary judgment in part (as to plaintiffs’ claims relating to certain statements made in October 2014) and denying it as to the remainder of plaintiffs’ claims. The court held a conference on August 24, 2022, ordering the parties to submit a joint pre-trial order by January 10, 2023. A pre-trial conference was also scheduled for February 3, 2023. The Company is continuing to defend two putative class actions in California federal court, Holland Hewitt v. Allstate Life Insurance Company (E.D. Cal., filed May 2020) and Farley v. Lincoln Benefit Life Compan y (E.D. Cal., filed Dec. 2020), following the sale of ALIC. No classes have been certified in these matters. Also pending is an individual action in California state court, Gilmore v. Lincoln Benefit Life Company (San Diego Co., Cal., filed October 29, 2021). In these cases, plaintiffs generally allege that the defendants failed to comply with certain California statutes which address contractual grace periods and lapse notice requirements for certain life insurance policies. Plaintiffs claim that these statutes apply to life insurance policies that existed before the statutes’ effective date. The plaintiffs seek damages and injunctive relief. Similar litigation is pending against other insurance carriers. In August 2021, the California Supreme Court in McHugh v. Protective Life |
Benefit Plans
Benefit Plans | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Note 13 Benefit Plans Components of net cost (benefit) for pension and other postretirement plans Three months ended September 30, Nine months ended September 30, ($ in millions) 2022 2021 2022 2021 Pension benefits Service cost $ 22 $ 27 $ 79 $ 78 Interest cost 59 47 157 145 Expected return on plan assets (85) (112) (295) (338) Amortization of prior service credit (2) (13) (27) (38) Costs and expenses (6) (51) (86) (153) Remeasurement of projected benefit obligation (254) (25) (1,427) (292) Remeasurement of plan assets 335 68 1,563 (99) Remeasurement (gains) losses 81 43 136 (391) Pension net cost (benefit) $ 75 $ (8) $ 50 $ (544) Postretirement benefits Service cost $ — $ — $ 1 $ 1 Interest cost 3 2 7 6 Amortization of prior service credit (7) (5) (19) (18) Costs and expenses (4) (3) (11) (11) Remeasurement of projected benefit obligation (2) (3) (45) (13) Remeasurement of plan assets — — — — Remeasurement (gains) losses (2) (3) (45) (13) Postretirement net benefit $ (6) $ (6) $ (56) $ (24) Pension and postretirement benefits Costs and expenses $ (10) $ (54) $ (97) $ (164) Remeasurement (gains) losses 79 40 91 (404) Total net cost (benefit) $ 69 $ (14) $ (6) $ (568) Differences in actual experience and changes in other assumptions affect our pension and other postretirement obligations and expenses. Differences between expected and actual returns on plan assets affect remeasurement (gains) losses. Pension and other postretirement service cost, interest cost, expected return on plan assets and amortization of prior service credit are reported in property and casualty insurance claims and claims expense, operating costs and expenses, net investment income and (if applicable) restructuring and related charges on the Condensed Consolidated Statements of Operations. Pension and postretirement benefits remeasurement gains and losses Three months ended September 30, Nine months ended September 30, ($ in millions) 2022 2021 2022 2021 Remeasurement of projected benefit obligation (gains) losses: Discount rate $ (284) $ (32) $ (1,289) $ (271) Other assumptions 28 4 (183) (34) Remeasurement of plan assets (gains) losses 335 68 1,563 (99) Remeasurement (gains) losses $ 79 $ 40 $ 91 $ (404) Remeasurement losses for the third quarter of 2022 are primarily related to unfavorable asset performance compared to expected return on plan assets, partially offset by a reduction in the projected benefit obligation due to an increase in the liability discount rate. Remeasurement losses in the first nine months of 2022 are primarily related to unfavorable asset performance compared to expected return on plan assets, partially offset by a reduction in the projected benefit obligation due to an increase in the liability discount rate and changes in other assumptions, primarily related to an increase in the long-term lump sum interest rate. The weighted average discount rate used to measure the benefit obligation increased to 5.72% at September 30, 2022 compared to 4.92% at June 30, 2022, 3.97% at March 31, 2022 and 2.93% at December 31, 2021 resulting in gains for the third quarter and first nine months of 2022. For the third quarter and first nine months of 2022, the actual return on plan assets was lower than the expected return due to higher interest rates, widening credit spreads and weak equity market performance. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Note 14 Supplemental Cash Flow Information Non-cash investing activities include $111 million and $31 million related to mergers and exchanges completed with equity and fixed income securities, bank loans, real estate, limited partnerships and modifications of other investments for the nine months ended September 30, 2022 and 2021, respectively. Non-cash financing activities include $65 million and $52 million related to the issuance of Allstate common shares for vested equity awards for the nine months ended September 30, 2022 and 2021, respectively. Cash flows used in operating activities in the Condensed Consolidated Statements of Cash Flows include cash paid for operating leases related to amounts included in the measurement of lease liabilities of $127 million and $137 million for the nine months ended September 30, 2022 and 2021, respectively. Non-cash operating activities include $17 million and $96 million related to right-of-use assets obtained in exchange for lease obligations for the nine months ended September 30, 2022 and 2021, respectively. Liabilities for collateral received in conjunction with the Company’s securities lending program and OTC and cleared derivatives are reported in other liabilities and accrued expenses or other investments. The accompanying cash flows are included in cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows along with the activities resulting from management of the proceeds, as follows: ($ in millions) Nine months ended September 30, 2022 2021 Net change in proceeds managed Net change in fixed income securities $ (473) $ — Net change in short-term investments (285) (579) Operating cash flow (used) (758) (579) Net change in cash 1 12 Net change in proceeds managed $ (757) $ (567) Cash flows from operating activities Net change in liabilities Liabilities for collateral, beginning of period $ (1,444) $ (914) Liabilities for collateral, end of period (2,201) (1,481) Operating cash flow provided $ 757 $ 567 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2022 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Other Comprehensive Income (Loss) | Note 15 Other Comprehensive Income (Loss) Components of other comprehensive income (loss) on a pre-tax and after-tax basis ($ in millions) Three months ended September 30, 2022 2021 Pre-tax Tax After-tax Pre-tax Tax After-tax Unrealized net holding gains and losses arising during the period, net of related offsets $ (1,161) $ 246 $ (915) $ (343) $ 73 $ (270) Less: reclassification adjustment of realized capital gains and losses (159) 33 (126) 84 (18) 66 Unrealized net capital gains and losses (1,002) 213 (789) (427) 91 (336) Unrealized foreign currency translation adjustments (112) 24 (88) (26) 5 (21) Unamortized pension and other postretirement prior service credit (1) (9) 1 (8) (19) 4 (15) Other comprehensive (loss) income $ (1,123) $ 238 $ (885) $ (472) $ 100 $ (372) Nine months ended September 30, 2022 2021 Pre-tax Tax After-tax Pre-tax Tax After-tax Unrealized net holding gains and losses arising during the period, net of related offsets $ (5,081) $ 1,080 $ (4,001) $ (1,350) $ 288 $ (1,062) Less: reclassification adjustment of realized capital gains and losses (602) 126 (476) 367 (77) 290 Unrealized net capital gains and losses (4,479) 954 (3,525) (1,717) 365 (1,352) Unrealized foreign currency translation adjustments (171) 36 (135) 13 (3) 10 Unamortized pension and other postretirement prior service credit (1) (47) 9 (38) (56) 12 (44) Other comprehensive (loss) income $ (4,697) $ 999 $ (3,698) $ (1,760) $ 374 $ (1,386) (1) Represents prior service credits reclassified out of other comprehensive income and amortized into operating costs and expenses. |
General (Policies)
General (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
General [Abstract] | |
Basis of presentation | Basis of presentation The accompanying condensed consolidated financial statements include the accounts of The Allstate Corporation (the “Corporation”) and its wholly owned subsidiaries, primarily Allstate Insurance Company (“AIC”), a property and casualty insurance company with various property and casualty and investment subsidiaries (collectively referred to as the “Company” or “Allstate”) and variable interest entities (“VIEs”) in which the Company is considered a primary beneficiary. These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The condensed consolidated financial statements and notes as of September 30, 2022 and for the three and nine month periods ended September 30, 2022 and 2021 are unaudited. The condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring accruals) which are, in the opinion of management, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods. These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2021. The results of operations for the interim periods should not be considered indicative of results to be expected for the full year. All significant intercompany accounts and transactions have been eliminated. |
Pending accounting standard | Pending accounting standard Accounting for Long-Duration Insurance Contracts In August 2018, the Financial Accounting Standards Board (”FASB”) issued guidance revising the accounting for certain long-duration insurance contracts. As disclosed in Note 3, the Company sold substantially all of its life and annuity business in scope of the new standard. The Company’s reserves and deferred policy acquisition costs (“DAC”) for certain voluntary and individual life and accident and health insurance products are subject to the new guidance. Under the new guidance, measurement assumptions, including those for mortality, morbidity and policy terminations, will be required to be reviewed at least annually, and updated as appropriate. The effects of updating assumptions other than the discount rate are required to be measured on a retrospective basis and reported in net income. In addition, reserves under the new guidance are required to be discounted using an upper-medium grade fixed income instrument yield that is updated through other comprehensive income (“OCI”) at each reporting date. Current GAAP requires the measurement of reserves to utilize assumptions set at policy issuance unless updated current assumptions indicate that recorded reserves are deficient. The new guidance also requires DAC and other capitalized balances currently amortized in proportion to premiums or gross profits to be amortized on a constant level basis over the expected term for all long-duration insurance contracts. DAC will not be subject to loss recognition testing but will be reduced when actual lapse experience exceeds expected experience. The new guidance is effective for financial statements issued for reporting periods beginning after December 15, 2022 and restatement of prior periods presented is required. The new guidance will be applied to affected contracts and DAC on the basis of existing carrying amounts at the earliest period presented. In July 2022, the FASB issued an Exposure Draft of an Accounting Standards Update (“Exposure Draft”) that would provide reporting entities with an accounting policy election to not apply the new guidance to insurance contracts in-force on the January 1, 2021 transition date but sold prior to the January 1, 2023 effective date provided certain conditions are met. The Company will adopt the new guidance effective January 1, 2023, using the modified retrospective approach and make the accounting policy election to not apply the new guidance to insurance contracts in-force on the transition date but sold prior to the effective date. The total impact on equity of implementing the new guidance is expected to be a decrease of between $250 million and $350 million. The expected decrease in equity includes the anticipated decrease in AOCI of between $235 million and $315 million primarily attributable to a change in the discount rate used in measuring the liability for future policy benefits for traditional life contracts and other long-term products with guaranteed terms from a portfolio-based rate at contract issuance to an upper-medium grade fixed income-based rate. The expected decrease in equity also includes the anticipated decrease in retained income of between $15 million and $35 million which primarily relates to certain long-term contracts with guaranteed terms with net premium ratios that are required to be adjusted at the transition date. The impact on equity, AOCI, and retained income excludes sold contracts that would meet the conditions included in the Exposure Draft. The estimated impact to AOCI at transition date is expected to decline significantly at the effective date due to the increase in the discount rate between the transition date and effective date. |
Earnings per common share | Basic earnings per common share is computed using the weighted average number of common shares outstanding, including vested unissued participating restricted stock units. Diluted earnings per common share is computed using the weighted average number of common and dilutive potential common shares outstanding. For the Company, dilutive potential common shares consist of outstanding stock options, unvested non-participating restricted stock units and contingently issuable performance stock awards. The effect of dilutive potential common shares does not include the effect of options with an anti-dilutive effect on earnings per common share because their exercise prices exceed the average market price of Allstate common shares during the period or for which the unrecognized compensation cost would have an anti-dilutive effect. |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings per common share | Computation of basic and diluted earnings per common share (In millions, except per share data) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Numerator: Net (loss) income from continuing operations $ (683) $ 206 $ (1,061) $ 4,047 Less: Net loss attributable to noncontrolling interest (15) (7) (34) (7) Net (loss) income from continuing operations attributable to Allstate (668) 213 (1,027) 4,054 Less: Preferred stock dividends 26 30 79 87 Net (loss) income from continuing operations applicable to common shareholders (694) 183 (1,106) 3,967 Income (loss) from discontinued operations, net of tax — 325 — (3,272) Net (loss) income applicable to common shareholders $ (694) $ 508 $ (1,106) $ 695 Denominator: Weighted average common shares outstanding 268.7 293.1 273.5 298.1 Effect of dilutive potential common shares (1) : Stock options — 3.1 — 2.9 Restricted stock units (non-participating) and performance stock awards — 1.7 — 1.6 Weighted average common and dilutive potential common shares outstanding 268.7 297.9 273.5 302.6 Earnings per common share applicable to common shareholders Basic Continuing operations $ (2.58) $ 0.62 $ (4.04) $ 13.31 Discontinued operations — 1.11 — (10.98) Total $ (2.58) $ 1.73 $ (4.04) $ 2.33 Diluted (1) Continuing operations $ (2.58) $ 0.62 $ (4.04) $ 13.11 Discontinued operations — 1.09 — (10.81) Total $ (2.58) $ 1.71 $ (4.04) $ 2.30 Anti-dilutive options excluded from diluted earnings per common share 2.4 0.6 1.6 1.3 Weighted average dilutive potential common shares excluded due to net loss applicable to common shareholders (1) 2.9 — 3.3 — (1) As a result of the net loss reported for the three and nine month periods ended September 30, 2022, weighted average shares for basic earnings per share is also used for calculating diluted earnings per share because all dilutive potential common shares are anti-dilutive and are therefore excluded from the calculation. |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Table) | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of recognized identified assets acquired and liabilities assumed | Assets and liabilities recognized in the National General acquisition (1) ($ in millions) January 4, 2021 Assets Investments $ 4,962 Cash 400 Premiums and other receivables, net 1,539 Deferred acquisition costs (value of business acquired) 317 Reinsurance recoverables, net 1,212 Intangible assets 1,199 Other assets 734 Goodwill (2) 1,038 Total assets 11,401 Liabilities Reserve for property and casualty insurance claims and claims expense 2,765 Reserve for future policy benefits 186 Unearned premiums 2,245 Reinsurance payable 363 Debt (3) 593 Deferred tax liabilities 162 Other liabilities 776 Total liabilities $ 7,090 (1) The amounts reflect allocation of assets acquired and liabilities assumed. (2) $675 million, $20 million and $343 million of goodwill were allocated to the Allstate Protection, Protection Services and Allstate Health and Benefits segments, respectively, and is non-deductible for income tax purposes. Goodwill is primarily attributable to expected synergies and future growth opportunities. (3) Subsequent to the acquisition, the Company repaid $100 million of 7.625% Subordinated Notes and $72 million of Subordinated Debentures on February 3, 2021 and March 15, 2021, respectively. As of September 30, 2022, the Company had principal balance remaining of $350 million 6.750% Senior Notes due in 2024, with a fair value adjustment of $31 million. |
Schedule of disposal groups, including discontinued operations | Financial results from discontinued operations Three months ended September 30, Nine months ended September 30, ($ in millions) 2021 2021 Revenues Life premiums and contract charges $ 331 $ 1,007 Net investment income 427 1,251 Net gains (losses) on investments and derivatives 4 193 Total revenues 762 2,451 Costs and expenses Life contract benefits 411 1,207 Interest credited to contractholder funds 127 371 Amortization of DAC 27 84 Operating costs and expenses 45 151 Restructuring and related charges 7 30 Total costs and expenses 617 1,843 Amortization of deferred gain on reinsurance 1 5 Income from discontinued operations before income tax expense 146 613 Income tax expense 38 131 Income from discontinued operations, net of tax 108 482 Loss on disposition of operations 89 (4,048) Income tax benefit (128) (294) Loss on disposition of operations, net of tax 217 (3,754) Income (loss) from discontinued operations, net of tax $ 325 $ (3,272) Cash flows from discontinued operations Nine months ended September 30, ($ in millions) 2021 Net cash provided by operating activities from discontinued operations $ 888 Net cash used in investing activities from discontinued operations (405) |
Reportable Segments (Tables)
Reportable Segments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of business segments net income disclosures | A reconciliation of these measures to net income (loss) applicable to common shareholders is provided below. Reportable segments financial performance Three months ended September 30, Nine months ended September 30, ($ in millions) 2022 2021 2022 2021 Underwriting income (loss) by segment Allstate Protection $ (1,170) $ (421) $ (1,749) $ 1,670 Run-off Property-Liability (122) (113) (127) (118) Total Property-Liability (1,292) (534) (1,876) 1,552 Adjusted net income (loss) by segment, after-tax Protection Services 35 45 131 150 Allstate Health and Benefits 54 33 172 160 Corporate and Other (104) (95) (322) (330) Reconciling items Property-Liability net investment income 632 710 1,696 2,314 Net gains (losses) on investments and derivatives (167) 105 (1,167) 818 Pension and other postretirement remeasurement gains (losses) (79) (40) (91) 404 Business combination expenses and amortization of purchased intangibles (1) (29) (34) (86) (124) Business combination fair value adjustment — — — 6 Gain (loss) on disposition of operations (5) — 6 — Income tax benefit (expense) on reconciling items 246 (14) 396 (990) Total reconciling items 598 727 754 2,428 Income (loss) from discontinued operations — 235 — (3,435) Income tax benefit from discontinued operations — 90 — 163 Total from discontinued operations $ — $ 325 $ — $ (3,272) Less: Net loss attributable to noncontrolling interest (2) (15) (7) (35) (7) Net (loss) income applicable to common shareholders $ (694) $ 508 $ (1,106) $ 695 (1) Excludes amortization of purchased intangibles in Property-Liability, which is included above in underwriting income. (2) Reflects net loss attributable to noncontrolling interest in Property-Liability. |
Schedule of business segments revenue disclosures | Reportable segments revenue information ($ in millions) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Property-Liability Insurance premiums Auto $ 7,545 $ 6,912 $ 21,974 $ 20,604 Homeowners 2,776 2,522 8,065 7,325 Other personal lines 540 521 1,616 1,545 Commercial lines 296 204 874 590 Allstate Protection 11,157 10,159 32,529 30,064 Run-off Property-Liability — — — — Total Property-Liability insurance premiums 11,157 10,159 32,529 30,064 Other revenue 364 365 1,066 1,071 Net investment income 632 710 1,696 2,314 Net gains (losses) on investments and derivatives (123) 94 (988) 763 Total Property-Liability 12,030 11,328 34,303 34,212 Protection Services Protection plans 330 295 961 834 Roadside assistance 50 50 152 144 Finance and insurance products 124 111 362 324 Intersegment premiums and service fees (1) 39 46 118 133 Other revenue 84 85 269 263 Net investment income 13 10 34 32 Net gains (losses) on investments and derivatives (13) 4 (56) 20 Total Protection Services 627 601 1,840 1,750 Allstate Health and Benefits Employer voluntary benefits 257 251 780 769 Group health 96 90 285 260 Individual health 110 119 333 333 Other revenue 90 85 277 248 Net investment income 17 18 50 56 Net gains (losses) on investments and derivatives (6) (1) (25) 5 Total Allstate Health and Benefits 564 562 1,700 1,671 Corporate and Other Other revenue 23 1 72 3 Net investment income 28 26 66 44 Net gains (losses) on investments and derivatives (25) 8 (98) 30 Total Corporate and Other 26 35 40 77 Intersegment eliminations (1) (39) (46) (118) (133) Consolidated revenues $ 13,208 $ 12,480 $ 37,765 $ 37,577 (1) Intersegment insurance premiums and service fees are primarily related to Arity and Allstate Roadside and are eliminated in the condensed consolidated financial statements. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments [Abstract] | |
Portfolio composition | Portfolio composition ($ in millions) September 30, 2022 December 31, 2021 Fixed income securities, at fair value $ 41,715 $ 42,136 Equity securities, at fair value 4,723 7,061 Mortgage loans, net 833 821 Limited partnership interests 7,907 8,018 Short-term investments, at fair value 4,030 4,009 Other investments, net 1,798 2,656 Total $ 61,006 $ 64,701 |
Schedule for fixed income securities at amortized cost, gross unrealized gains and losses and fair value | Amortized cost, gross unrealized gains (losses) and fair value for fixed income securities ($ in millions) Amortized cost, net Gross unrealized Fair value Gains Losses September 30, 2022 U.S. government and agencies $ 8,756 $ 1 $ (313) $ 8,444 Municipal 6,486 4 (461) 6,029 Corporate 27,614 3 (2,885) 24,732 Foreign government 933 — (43) 890 ABS 1,679 4 (63) 1,620 Total fixed income securities $ 45,468 $ 12 $ (3,765) $ 41,715 December 31, 2021 U.S. government and agencies $ 6,287 $ 12 $ (26) $ 6,273 Municipal 6,130 279 (16) 6,393 Corporate 26,834 688 (192) 27,330 Foreign government 982 9 (6) 985 ABS 1,143 14 (2) 1,155 Total fixed income securities $ 41,376 $ 1,002 $ (242) $ 42,136 |
Schedule for fixed income securities based on contractual maturities | Scheduled maturities for fixed income securities ($ in millions) September 30, 2022 December 31, 2021 Amortized cost, net Fair value Amortized cost, net Fair value Due in one year or less $ 2,429 $ 2,398 $ 1,105 $ 1,111 Due after one year through five years 26,566 24,992 21,039 21,291 Due after five years through ten years 11,356 9,738 13,808 14,079 Due after ten years 3,438 2,967 4,281 4,500 43,789 40,095 40,233 40,981 ABS 1,679 1,620 1,143 1,155 Total $ 45,468 $ 41,715 $ 41,376 $ 42,136 |
Schedule of net investment income | Net investment income ($ in millions) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Fixed income securities $ 323 $ 279 $ 889 $ 870 Equity securities 30 24 100 51 Mortgage loans 8 9 25 31 Limited partnership interests 325 438 841 1,467 Short-term investments 30 1 42 3 Other investments 38 50 120 139 Investment income, before expense 754 801 2,017 2,561 Investment expense (64) (37) (171) (115) Net investment income $ 690 $ 764 $ 1,846 $ 2,446 |
Schedule of realized capital gains and losses by asset type | Net gains (losses) on investments and derivatives by asset type ($ in millions) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Fixed income securities $ (166) $ 86 $ (644) $ 355 Equity securities (239) 6 (1,222) 322 Mortgage loans 1 — — 19 Limited partnership interests (49) (15) (224) 1 Derivatives 299 46 889 54 Other investments (13) (18) 34 67 Net gains (losses) on investments and derivatives $ (167) $ 105 $ (1,167) $ 818 |
Schedule of realized capital gains and losses by transaction type | Net gains (losses) on investments and derivatives by transaction type ($ in millions) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Sales $ (175) $ 80 $ (605) $ 441 Credit losses (6) (12) (30) 2 Valuation change of equity investments (1) (285) (9) (1,421) 321 Valuation change and settlements of derivatives 299 46 889 54 Net gains (losses) on investments and derivatives $ (167) $ 105 $ (1,167) $ 818 (1) Includes valuation change of equity securities and certain limited partnership interests where the underlying assets are predominately public equity securities. |
Gross realized gains (losses) on sales of fixed income securities | Gross realized gains (losses) on sales of fixed income securities ($ in millions) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Gross realized gains $ 19 $ 104 $ 112 $ 460 Gross realized losses (181) (18) (748) (106) |
Valuation changes included in net income for investments | Net appreciation (decline) recognized in net income ($ in millions) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Equity securities $ (209) $ (20) $ (771) $ 170 Limited partnership interests carried at fair value (36) 137 8 415 Total $ (245) $ 117 $ (763) $ 585 |
Schedule of credit losses on fixed income securities recognized in earnings | Credit losses recognized in net income ($ in millions) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Assets Fixed income securities: Corporate $ (2) $ — $ (6) $ — ABS (2) — (2) 1 Total fixed income securities (4) — (8) 1 Mortgage loans 1 — — 17 Limited partnership interests (1) — (4) — Other investments Bank loans (2) (13) (18) (16) Agent loans — 1 — — Total credit losses by asset type $ (6) $ (12) $ (30) $ 2 Liabilities Commitments to fund commercial mortgage loans and bank loans — — — — Total $ (6) $ (12) $ (30) $ 2 |
Schedule of unrealized net capital gains and losses | Unrealized net capital gains and losses included in AOCI ($ in millions) Fair value Gross unrealized Unrealized net gains (losses) September 30, 2022 Gains Losses Fixed income securities $ 41,715 $ 12 $ (3,765) $ (3,753) Short-term investments 4,030 — (1) (1) Derivative instruments — — (3) (3) Equity method of accounting (“EMA”) limited partnerships (1) 7 Unrealized net capital gains and losses, pre-tax (3,750) Other unrealized net capital gains and losses, pre-tax (2) 32 Deferred income taxes 791 Unrealized net capital gains and losses, after-tax $ (2,927) December 31, 2021 Fixed income securities $ 42,136 $ 1,002 $ (242) $ 760 Short-term investments 4,009 — — — Derivative instruments — — (3) (3) EMA limited partnerships (1) (1) Unrealized net capital gains and losses, pre-tax 756 Other unrealized net capital gains and losses, pre-tax (2) 5 Deferred income taxes (163) Unrealized net capital gains and losses, after-tax $ 598 (1) Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of EMA limited partnerships’ OCI. Fair value and gross unrealized gains and losses are not applicable. (2) Includes amounts recognized for the reclassification of unrealized gains and losses related to noncontrolling interest and the amount by which the amortization of DAC would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized. |
Schedule of change in unrealized net capital gains and losses | Change in unrealized net capital gains (losses) ($ in millions) Nine months ended September 30, 2022 Fixed income securities $ (4,513) Short-term investments (1) Derivative instruments — EMA limited partnerships 8 Total (4,506) Other unrealized net capital gains and losses, pre-tax 27 Deferred income taxes 954 Decrease in unrealized net capital gains and losses, after-tax $ (3,525) |
Carrying value for limited partnership interests | Carrying value for limited partnership interests ($ in millions) September 30, 2022 December 31, 2021 EMA Fair Value Total EMA Fair Value Total Private equity $ 5,287 $ 1,280 $ 6,567 $ 4,905 $ 1,434 $ 6,339 Real estate 881 38 919 823 97 920 Other (1) 421 — 421 759 — 759 Total $ 6,589 $ 1,318 $ 7,907 $ 6,487 $ 1,531 $ 8,018 (1) Other consists of certain limited partnership interests where the underlying assets are predominately public equity and debt securities. |
Schedule of other investments by type | Other investments by asset type ($ in millions) September 30, 2022 December 31, 2021 Bank loans, net $ 748 $ 1,574 Real estate 774 809 Policy loans 119 148 Derivatives 48 12 Other 109 113 Total $ 1,798 $ 2,656 |
Allowance for credit loss | Rollforward of credit loss allowance for fixed income securities Three months ended September 30, Nine months ended September 30, ($ in millions) 2022 2021 2022 2021 Beginning balance $ (10) $ (2) $ (6) $ (3) Credit losses on securities for which credit losses not previously reported (2) — (2) — Net (increases) decreases related to credit losses previously reported (2) — (6) 1 Reduction of allowance related to sales 1 — 1 — Write-offs — — — — Ending balance (1) (2) $ (13) $ (2) $ (13) $ (2) (1) Allowance for fixed income securities as of September 30, 2022 comprised $11 million and $2 million of corporate bonds and ABS, respectively. Allowance for fixed income securities as of September 30, 2021 comprised $1 million and $1 million of corporate bonds and ABS, respectively. (2) Includes $1 million of credit loss allowance for fixed income securities that were classified as held for sale as of September 30, 2021. Rollforward of credit loss allowance for mortgage loans Three months ended September 30, Nine months ended September 30, ($ in millions) 2022 2021 2022 2021 Beginning balance $ (7) $ (30) $ (6) $ (67) Net (increases) decreases related to credit losses 1 2 — 39 Write-offs — — — — Ending balance (1) $ (6) $ (28) $ (6) $ (28) (1) Includes $21 million of credit loss allowance for mortgage loans that were classified as held for sale as of September 30, 2021. Rollforward of credit loss allowance for bank loans ($ in millions) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Beginning balance $ (56) $ (52) $ (61) $ (67) Net increases related to credit losses (2) (14) (18) (10) Reduction of allowance related to sales 6 2 27 13 Write-offs — — — — Ending balance (1) $ (52) $ (64) $ (52) $ (64) (1) Includes $7 million of credit loss allowance for bank loans that were classified as held for sale as of September 30, 2021. |
Schedule of gross unrealized losses and fair value of available for sale securities by length of time | Gross unrealized losses and fair value by type and length of time held in a continuous unrealized loss position ($ in millions) Less than 12 months 12 months or more Total unrealized losses Number of issues Fair value Unrealized losses Number of issues Fair value Unrealized losses September 30, 2022 Fixed income securities U.S. government and agencies 137 $ 6,980 $ (231) 53 $ 1,428 $ (82) $ (313) Municipal 3,880 5,508 (400) 289 341 (61) (461) Corporate 2,611 21,603 (2,305) 515 2,879 (580) (2,885) Foreign government 80 744 (27) 42 141 (16) (43) ABS 269 1,484 (58) 62 36 (5) (63) Total fixed income securities 6,977 $ 36,319 $ (3,021) 961 $ 4,825 $ (744) $ (3,765) Investment grade fixed income securities 6,313 $ 32,385 $ (2,346) 902 $ 4,474 $ (643) $ (2,989) Below investment grade fixed income securities 664 3,934 (675) 59 351 (101) (776) Total fixed income securities 6,977 $ 36,319 $ (3,021) 961 $ 4,825 $ (744) $ (3,765) December 31, 2021 Fixed income securities U.S. government and agencies 112 $ 5,451 $ (24) 4 $ 72 $ (2) $ (26) Municipal 767 1,213 (15) 2 14 (1) (16) Corporate 1,197 9,725 (176) 22 130 (16) (192) Foreign government 51 415 (6) 4 3 — (6) ABS 80 500 (2) 53 8 — (2) Total fixed income securities 2,207 $ 17,304 $ (223) 85 $ 227 $ (19) $ (242) Investment grade fixed income securities 1,993 $ 15,391 $ (188) 71 $ 183 $ (8) $ (196) Below investment grade fixed income securities 214 1,913 (35) 14 44 (11) (46) Total fixed income securities 2,207 $ 17,304 $ (223) 85 $ 227 $ (19) $ (242) |
Carrying value of non-impaired fixed and variable rate mortgage loans by debt service coverage ratio distribution | Gross unrealized losses by unrealized loss position and credit quality as of September 30, 2022 ($ in millions) Investment grade Below investment grade Total Fixed income securities with unrealized loss position less than 20% of amortized cost, net (1) (2) $ (2,422) $ (439) $ (2,861) Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost, net (3) (4) (567) (337) (904) Total unrealized losses $ (2,989) $ (776) $ (3,765) (1) Below investment grade fixed income securities include $419 million that have been in an unrealized loss position for less than twelve months. (2) Related to securities with an unrealized loss position less than 20% of amortized cost, net, the degree of which suggests that these securities do not pose a high risk of having credit losses. (3) No below investment grade fixed income securities have been in an unrealized loss position for a period of twelve or more consecutive months. (4) Evaluated based on factors such as discounted cash flows and the financial condition and near-term and long-term prospects of the issue or issuer and were determined to have adequate resources to fulfill contractual obligations. |
Accrued interest | Accrued interest ($ in millions) September 30, December 31, 2022 2021 Mortgage loans $ 3 $ 2 Bank Loans 4 4 |
Mortgage loans amortized cost by debt service coverage ratio distribution and year of origination | Mortgage loans amortized cost by debt service coverage ratio distribution and year of origination September 30, 2022 December 31, 2021 ($ in millions) 2017 and prior 2018 2019 2020 2021 Current Total Total Below 1.0 $ — $ — $ — $ — $ — $ 18 $ 18 $ — 1.0 - 1.25 35 — — 10 — 22 67 46 1.26 - 1.50 13 5 103 — — 7 128 160 Above 1.50 77 101 136 41 217 54 626 621 Amortized cost before allowance $ 125 $ 106 $ 239 $ 51 $ 217 $ 101 $ 839 $ 827 Allowance (6) (6) Amortized cost, net $ 833 $ 821 |
Bank loans amortized cost by credit quality and year of origination | Bank loans amortized cost by credit rating and year of origination September 30, 2022 December 31, 2021 ($ in millions) 2017 and prior 2018 2019 2020 2021 Current Total Total NAIC 2 / BBB $ — $ — $ 7 $ 5 $ 37 $ — $ 49 $ 86 NAIC 3 / BB 9 — 7 3 262 14 295 656 NAIC 4 / B 8 16 18 18 271 30 361 768 NAIC 5-6/ CCC and below 21 10 40 8 11 5 95 125 Amortized cost before allowance $ 38 $ 26 $ 72 $ 34 $ 581 $ 49 $ 800 $ 1,635 Allowance (52) (61) Amortized cost, net $ 748 $ 1,574 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities that are measured at fair value on a recurring and non-recurring basis | Assets and liabilities measured at fair value September 30, 2022 ($ in millions) Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Counterparty and cash collateral netting Total Assets Fixed income securities: U.S. government and agencies $ 8,424 $ 20 $ — $ 8,444 Municipal — 6,010 19 6,029 Corporate - public — 16,751 68 16,819 Corporate - privately placed — 7,842 71 7,913 Foreign government — 890 — 890 ABS — 1,572 48 1,620 Total fixed income securities 8,424 33,085 206 41,715 Equity securities 4,092 304 327 4,723 Short-term investments 928 3,096 6 4,030 Other investments — 107 2 $ (59) 50 Other assets 14 — 104 118 Total recurring basis assets 13,458 36,592 645 (59) 50,636 Non-recurring basis — — 23 23 Total assets at fair value $ 13,458 $ 36,592 $ 668 $ (59) $ 50,659 % of total assets at fair value 26.6 % 72.2 % 1.3 % (0.1) % 100.0 % Investments reported at NAV 1,318 Total $ 51,977 Liabilities Other liabilities $ (9) $ (32) $ — $ (7) $ (48) Total recurring basis liabilities (9) (32) — (7) (48) Total liabilities at fair value $ (9) $ (32) $ — $ (7) $ (48) % of total liabilities at fair value 18.7 % 66.7 % — % 14.6 % 100.0 % Assets and liabilities measured at fair value December 31, 2021 ($ in millions) Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Counterparty and cash collateral netting Total Assets Fixed income securities: U.S. government and agencies $ 6,247 $ 26 $ — $ 6,273 Municipal — 6,375 18 6,393 Corporate - public — 16,569 20 16,589 Corporate - privately placed — 10,675 66 10,741 Foreign government — 985 — 985 ABS — 1,115 40 1,155 Total fixed income securities 6,247 35,745 144 42,136 Equity securities 6,312 400 349 7,061 Short-term investments 1,140 2,864 5 4,009 Other investments — 34 2 $ (22) 14 Other assets 1 — 65 66 Total recurring basis assets 13,700 39,043 565 (22) 53,286 Non-recurring basis — — 32 32 Total assets at fair value $ 13,700 $ 39,043 $ 597 $ (22) $ 53,318 % of total assets at fair value 25.7 % 73.2 % 1.1 % — % 100.0 % Investments reported at NAV 1,531 Total $ 54,849 Liabilities Other liabilities $ (3) $ (12) $ — $ 7 $ (8) Total recurring basis liabilities (3) (12) — 7 (8) Total liabilities at fair value $ (3) $ (12) $ — $ 7 $ (8) % of total liabilities at fair value 37.5 % 150.0 % — % (87.5) % 100.0 % Quantitative information about the significant unobservable inputs used in Level 3 fair value measurements (1) September 30, 2021 ($ in millions) Fair value Valuation Unobservable Range Weighted Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options $ (455) Stochastic cash flow model Projected option cost 1.0 - 4.2% 2.90% (1) These were included in the liabilities held for sale as of September 30, 2021. |
Schedule of the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis | Rollforward of Level 3 assets and liabilities held at fair value during the three month period ended September 30, 2022 Balance as of Total gains (losses) included in: Transfers Balance as of ($ in millions) Net income OCI Into Level 3 Out of Level 3 Purchases Sales Issues Settlements Assets Fixed income securities: Municipal $ 18 $ — $ — $ 2 $ (1) $ — $ — $ — $ — $ 19 Corporate - public 77 — (2) — — — (7) — — 68 Corporate - privately placed 73 1 1 — — 18 (22) — — 71 ABS 18 — — — — 30 — — — 48 Total fixed income securities 186 1 (1) 2 (1) 48 (29) — — 206 Equity securities 372 (16) — — — 8 (37) — — 327 Short-term investments 8 — — — — — — — (2) 6 Other investments 2 — — — — — — — — 2 Other assets 108 (4) — — — — — — — 104 Total recurring Level 3 assets 676 (19) (1) 2 (1) 56 (66) — (2) 645 Liabilities Total recurring Level 3 liabilities $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Rollforward of Level 3 assets and liabilities held at fair value during the nine month period ended September 30, 2022 Balance as of Total gains (losses) included in: Transfers Balance as of ($ in millions) Net income OCI Into Level 3 Out of Level 3 Purchases Sales Issues Settlements Assets Fixed income securities: Municipal $ 18 $ — $ 1 $ 2 $ — $ — $ — $ — $ (2) $ 19 Corporate - public 20 — (6) — — 66 (10) — (2) 68 Corporate - privately placed 66 20 (1) — — 32 (46) — — 71 ABS 40 1 — — (28) 37 — — (2) 48 Total fixed income securities 144 21 (6) 2 (28) 135 (56) — (6) 206 Equity securities 349 13 — — — 10 (45) — — 327 Short-term investments 5 — — — — 23 — — (22) 6 Other investments 2 — — — — — — — — 2 Other assets 65 39 — — — — — — — 104 Total recurring Level 3 assets 565 73 (6) 2 (28) 168 (101) — (28) 645 Liabilities Total recurring Level 3 liabilities $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Rollforward of Level 3 assets and liabilities held at fair value during the three month period ended September 30, 2021 Balance as of Total gains (losses) included in: Transfers Transfers to (from) held for sale Balance as of ($ in millions) Net income OCI Into Level 3 Out of Level 3 Purchases Sales Issues Settlements Assets Fixed income securities: Municipal $ 18 $ — $ (1) $ — $ — $ — $ — $ — $ — $ — $ 17 Corporate - public 20 — — — — (1) — — — — 19 Corporate - privately placed 84 1 1 — (22) (2) 104 (7) — (5) 154 ABS 33 — — 1 — — 5 — — (30) 9 Total fixed income securities 155 1 — 1 (22) (3) 109 (7) — (35) 199 Equity securities 405 31 — — — — 27 (87) — — 376 Short-term investments — — — — — — 14 — — — 14 Other investments 3 — — — — — — (1) — — 2 Assets held for sale 164 1 — — (20) 3 — — — (2) 146 Total recurring Level 3 assets 727 33 — 1 (42) — 150 (95) — (37) 737 Liabilities Liabilities held for sale (490) 15 — — — — — — (9) 5 (479) Total recurring Level 3 liabilities $ (490) $ 15 $ — $ — $ — $ — $ — $ — $ (9) $ 5 $ (479) Rollforward of Level 3 assets and liabilities held at fair value during the nine month period ended September 30, 2021 Balance as of Total gains (losses) included in: Transfers Transfers to (from) held for sale Balance as of ($ in millions) Net income OCI Into Level 3 Out of Level 3 Purchases Sales Issues Settlements Assets Fixed income securities: Municipal $ 17 $ — $ — $ — $ — $ — $ 3 $ — $ — $ (3) $ 17 Corporate - public 67 1 (2) — — (7) 13 (53) — — 19 Corporate - privately placed 63 — 2 8 — 14 103 (31) — (5) 154 ABS 79 1 — — (32) — 57 (42) — (54) 9 Total fixed income securities 226 2 — 8 (32) 7 176 (126) — (62) 199 Equity securities 304 63 — — — 101 40 (132) — — 376 Short-term investments 35 — — — — — 14 — — (35) 14 Other investments — — — — — — 3 (1) — — 2 Assets held for sale 267 3 — 5 (13) (108) 3 (6) — (5) 146 Total recurring Level 3 assets 832 68 — 13 (45) — 236 (265) — (102) 737 Liabilities Liabilities held for sale (516) 46 — — — — — — (25) 16 (479) Total recurring Level 3 liabilities $ (516) $ 46 $ — $ — $ — $ — $ — $ — $ (25) $ 16 $ (479) Total Level 3 gains (losses) included in net income Three months ended September 30, Nine months ended September 30, ($ in millions) 2022 2021 2022 2021 Net investment income $ 4 $ 6 $ 17 $ (1) Net gains (losses) on investments and derivatives (23) 26 56 66 |
Schedule of gains and losses included in net income for Level 3 assets and liabilities still held at the balance sheet date | Valuation changes included in net income and OCI for Level 3 assets and liabilities held as of September 30, ($ in millions) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Assets Municipal $ — $ 1 $ — $ — Corporate - privately placed 1 — 1 — Total fixed income securities 1 1 1 — Equity securities $ (16) $ 9 $ 11 $ 22 Other assets (4) — 39 — Assets held for sale — 1 — 3 Total recurring Level 3 assets $ (19) $ 11 $ 51 $ 25 Liabilities Liabilities held for sale $ — $ 15 $ — $ 46 Total recurring Level 3 liabilities — 15 — 46 Total included in net income $ (19) $ 26 $ 51 $ 71 Components of net income Net investment income $ 3 $ 6 $ 16 $ (1) Net gains (losses) on investments and derivatives (22) 4 35 23 Total included in net income $ (19) $ 10 $ 51 $ 22 Assets Municipal $ — $ (1) $ 1 $ — Corporate - public (3) — (6) (1) Corporate - privately placed (1) 1 (2) 1 Total recurring Level 3 assets $ (4) $ — $ (7) $ — Changes in unrealized net capital gains and losses reported in OCI $ (4) $ — $ (7) $ — |
Schedule of carrying values and fair value estimates of financial instruments not carried at fair value | Financial instruments not carried at fair value ($ in millions) September 30, 2022 December 31, 2021 Financial assets Fair value level Amortized cost, net Fair value Amortized cost, net Fair value Mortgage loans Level 3 $ 833 $ 779 $ 821 $ 853 Bank loans Level 3 748 738 1,574 1,634 Financial liabilities Fair value level Carrying value (1) Fair Carrying value (1) Fair value Contractholder funds on investment contracts Level 3 $ 52 $ 52 $ 55 $ 55 Long-term debt Level 2 7,967 7,383 7,976 9,150 Liability for collateral Level 2 2,201 2,201 1,444 1,444 (1) Represents the amounts reported on the Condensed Consolidated Statements of Financial Position. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Volume and fair value positions of derivative instruments and location in the Consolidated Statement of Financial Position | Summary of the volume and fair value positions of derivative instruments as of September 30, 2022 ($ in millions, except number of contracts) Volume (1) Balance sheet location Notional amount Number of contracts Fair value, net Gross asset Gross liability Asset derivatives Derivatives not designated as accounting hedging instruments Interest rate contracts Futures Other assets n/a 45,626 $ 14 $ 14 $ — Equity and index contracts Options Other investments n/a 1,309 44 44 — Futures Other assets n/a 336 — — — Foreign currency contracts Foreign currency forwards Other investments $ 39 n/a (4) — (4) Embedded derivative financial instruments Other investments 750 n/a — — — Contingent consideration Other assets 250 n/a 104 104 — Credit default contracts Credit default swaps – buying protection Other investments 79 n/a 3 3 — Total asset derivatives $ 1,118 47,271 $ 161 $ 165 $ (4) Liability derivatives Derivatives not designated as accounting hedging instruments Interest rate contracts Futures Other liabilities & accrued expenses n/a 2,969 $ (1) $ — $ (1) Equity and index contracts Options Other liabilities & accrued expenses n/a 1,210 (16) — (16) Futures Other liabilities & accrued expenses n/a 3,674 (8) — (8) Foreign currency contracts Foreign currency forwards Other liabilities & accrued expenses $ 689 n/a 49 60 (11) Credit default contracts Credit default swaps – buying protection Other liabilities & accrued expenses 55 n/a (1) — (1) Total liability derivatives 744 7,853 23 $ 60 $ (37) Total derivatives $ 1,862 55,124 $ 184 (1) Volume for OTC and cleared derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable) Summary of the volume and fair value positions of derivative instruments as of December 31, 2021 ($ in millions, except number of contracts) Volume (1) Balance sheet location Notional amount Number of contracts Fair value, net Gross asset Gross liability Asset derivatives Derivatives not designated as accounting hedging instruments Interest rate contracts Futures Other assets n/a 1,181 $ 1 $ 1 $ — Equity and index contracts Options Other investments n/a 61 5 5 — Futures Other assets n/a 113 — — — Foreign currency contracts Foreign currency forwards Other investments $ 2 n/a — — — Embedded derivative financial instruments Other investments 750 n/a — — — Contingent consideration Other assets 250 n/a 65 65 — Credit default contracts Credit default swaps – buying protection Other investments 33 n/a (1) — (1) Credit default swaps – selling protection Other investments 250 n/a 6 6 — Total asset derivatives $ 1,285 1,355 $ 76 $ 77 $ (1) Liability derivatives Derivatives not designated as accounting hedging instruments Interest rate contracts Futures Other liabilities & accrued expenses n/a 36,668 $ (2) $ — $ (2) Equity and index contracts Futures Other liabilities & accrued expenses n/a 1,260 (1) — (1) Foreign currency contracts Foreign currency forwards Other liabilities & accrued expenses $ 715 n/a 16 23 (7) Credit default contracts Credit default swaps – buying protection Other liabilities & accrued expenses 70 n/a (4) — (4) Credit default swaps – selling protection Other liabilities & accrued expenses 5 n/a — — — Total liability derivatives 790 37,928 9 $ 23 $ (14) Total derivatives $ 2,075 39,283 $ 85 (1) Volume for OTC and cleared derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable) |
Schedule of gross and net amount for the Company's OTC derivatives subject to enforceable master netting arrangements | Gross and net amounts for OTC derivatives (1) ($ in millions) Offsets Gross amount Counter-party netting Cash collateral (received) pledged Net amount on balance sheet Securities collateral (received) pledged Net amount September 30, 2022 Asset derivatives $ 60 $ (64) $ 5 $ 1 $ — $ 1 Liability derivatives (16) 64 (71) (23) — (23) December 31, 2021 Asset derivatives $ 23 $ (24) $ 2 $ 1 $ — $ 1 Liability derivatives (10) 24 (17) (3) — (3) (1) All OTC derivatives are subject to enforceable master netting agreements. |
Gains and losses from valuation, settlements, and hedge ineffectiveness, fair value hedges and derivatives not designated as hedges | Gains (losses) from valuation and settlements reported on derivatives not designated as accounting hedges ($ in millions) Net gains (losses) on investments and derivatives Operating costs and expenses Total gain (loss) recognized in net income on derivatives Three months ended September 30, 2022 Interest rate contracts $ 260 $ — $ 260 Equity and index contracts 9 (8) 1 Contingent consideration — (4) (4) Foreign currency contracts 40 (6) 34 Credit default contracts (10) — (10) Other contracts — (1) (1) Total $ 299 $ (19) $ 280 Nine months ended September 30, 2022 Interest rate contracts $ 734 $ — $ 734 Equity and index contracts 65 (55) 10 Contingent consideration — 39 39 Foreign currency contracts 84 (8) 76 Credit default contracts 6 — 6 Other contracts — (1) (1) Total $ 889 $ (25) $ 864 Three months ended September 30, 2021 Interest rate contracts $ 18 $ — $ 18 Equity and index contracts 10 (3) 7 Foreign currency contracts 15 — 15 Credit default contracts 1 — 1 Total return swaps - fixed income 2 — 2 Total $ 46 $ (3) $ 43 Nine months ended September 30, 2021 Interest rate contracts $ 19 $ — $ 19 Equity and index contracts 2 27 29 Foreign currency contracts 23 — 23 Credit default contracts 6 — 6 Total return swaps - fixed income 4 — 4 Total $ 54 $ 27 $ 81 |
Schedule of OTC cash and securities collateral pledged | OTC cash and securities collateral pledged ($ in millions) September 30, 2022 Pledged by the Company $ 5 Pledged to the Company (1) 71 (1) No collateral was posted under MNA’s for contracts containing credit-risk-contingent provisions that are in a liability provision. |
Counterparty credit exposure by counterparty credit rating | OTC derivatives counterparty credit exposure by counterparty credit rating ($ in millions) September 30, 2022 December 31, 2021 Rating (1) Number of Notional amount (2) Credit exposure (2) Exposure, net of collateral (2) Number of Notional amount (2) Credit exposure (2) Exposure, net of collateral (2) A+ 4 $ 500 $ 25 $ — 1 $ 199 $ 7 $ — A 1 232 24 — 1 367 9 — Total 5 $ 732 $ 49 $ — 2 $ 566 $ 16 $ — (1) Allstate uses the lower of S&P’s or Moody’s long-term debt issuer ratings. (2) Only OTC derivatives with a net positive fair value are included for each counterparty. |
Schedule of exchange traded and cleared margin deposits | Exchange traded and cleared margin deposits ($ in millions) September 30, 2022 Pledged by the Company $ 162 Received by the Company 3 |
Derivative instruments with credit features in a liability position, including fair value of assets and collateral netted against the liability | The following table summarizes the fair value of derivative instruments with termination, cross-default or collateral credit-risk-contingent features that are in a liability position, as well as the fair value of assets and collateral that are netted against the liability in accordance with provisions within legally enforceable MNAs. ($ in millions) September 30, 2022 December 31, 2021 Gross liability fair value of contracts containing credit-risk-contingent features $ 11 $ 8 Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs (11) (7) Collateral posted under MNAs for contracts containing credit-risk-contingent features — — Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently $ — $ 1 |
Schedule of derivative CDS notional amount by credit rating and fair value of protection sold | CDS notional amounts by credit rating and fair value of protection sold ($ in millions) Notional amount AAA AA A BBB BB and lower Total Fair value December 31, 2021 Single name Corporate debt $ — $ — $ — $ — $ 5 $ 5 $ — Index Corporate debt 2 4 46 190 8 250 6 Total $ 2 $ 4 $ 46 $ 190 $ 13 $ 255 $ 6 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of variable interest entities | Assets and liabilities of Reciprocal Exchanges ($ in millions) September 30, 2022 December 31, 2021 Assets Fixed income securities $ 302 $ 324 Short-term investments 12 30 Deferred policy acquisition costs 20 15 Premium installment and other receivables, net 41 42 Reinsurance recoverables, net 119 114 Other assets 89 82 Total assets 583 607 Liabilities Reserve for property and casualty insurance claims and claims expense 200 226 Unearned premiums 174 175 Other liabilities and expenses 327 265 Total liabilities $ 701 $ 666 |
Reserve for Property and Casu_2
Reserve for Property and Casualty Insurance Claims and Claims Expense (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Reserve for Property-Liability Insurance Claims and Claims Expense [Abstract] | |
Schedule of liability for unpaid claims and claims adjustment expense | Rollforward of the reserve for property and casualty insurance claims and claims expense Nine months ended September 30, ($ in millions) 2022 2021 Balance as of January 1 $ 33,060 $ 27,610 Less recoverables (1) (9,479) (7,033) Net balance as of January 1 23,581 20,577 National General acquisition as of January 4, 2021 — 1,797 Incurred claims and claims expense related to: Current year 25,792 21,579 Prior years 1,470 (65) Total incurred 27,262 21,514 Claims and claims expense paid related to: Current year (14,020) (12,539) Prior years (9,850) (8,098) Total paid (23,870) (20,637) Net balance as of September 30 26,973 23,251 Plus recoverables 9,556 10,035 Balance as of September 30 $ 36,529 $ 33,286 (1) Recoverables comprises reinsurance and indemnification recoverables. Prior year reserve reestimates included in claims and claims expense (1) Non-catastrophe losses Catastrophe losses Total ($ in millions) 2022 2021 2022 2021 (2) (3) 2022 2021 Three months ended September 30, Auto $ 643 $ 77 $ (11) $ (5) $ 632 $ 72 Homeowners 51 14 4 3 55 17 Other personal lines (2) (66) (3) — (5) (66) Commercial lines 63 24 1 1 64 25 Run-off Property-Liability (4) 120 113 — — 120 113 Protection Services — — — — — — Total prior year reserve reestimates $ 875 $ 162 $ (9) $ (1) $ 866 $ 161 Nine months ended September 30, Auto $ 1,069 $ 31 $ (58) $ (28) $ 1,011 $ 3 Homeowners 95 12 82 (168) 177 (156) Other personal lines (18) (69) 4 (14) (14) (83) Commercial lines 174 55 1 3 175 58 Run-off Property-Liability (4) 124 115 — — 124 115 Protection Services (3) (2) — — (3) (2) Total prior year reserve reestimates $ 1,441 $ 142 $ 29 $ (207) $ 1,470 $ (65) (1) Favorable reserve reestimates are shown in parentheses. (2) Included approximately $40 million and $240 million of estimated recoveries related to Nationwide Aggregate Reinsurance Program cover for aggregate catastrophe losses occurring between April 1, 2020 and December 31, 2020, for the three and nine months ended 2021, respectively, which primarily impacted homeowners reestimates. (3) Included approximately $110 million favorable subrogation settlements arising from the Woolsey wildfire, which primarily impacted homeowners reestimates, for the nine months ended 2021. (4) The Company’s 2022 and 2021 annual reserve reviews, using established industry and actuarial practices, resulted in unfavorable reestimates of $118 million and $111 million, respectively . |
Reinsurance and Indemnificati_2
Reinsurance and Indemnification (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Reinsurance Disclosures [Abstract] | |
Schedule of reductions to costs and expenses due to reinsurance ceded amounts | Effects of reinsurance ceded and indemnification programs on property and casualty premiums earned and accident and health insurance premiums and contract charges ($ in millions) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Property and casualty insurance premiums earned $ (479) $ (442) $ (1,362) $ (1,488) Accident and health insurance premiums and contract charges (12) (17) (29) (65) Effects of reinsurance ceded and indemnification programs on property and casualty insurance claims and claims expense and accident, health and other policy benefits ($ in millions) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Property and casualty insurance claims and claims expense (1) (2) $ (925) $ (1,458) $ (1,300) $ (3,209) Accident, health and other policy benefits (5) (13) (21) (68) (1) Ceded losses incurred included $100 million and $525 million related to the Michigan Catastrophic Claims Association for the nine months ended September 30, 2022 and 2021, respectively, and $305 million of expected reinsurance recoveries related to the Florida Excess Catastrophe Reinsurance Program for Hurricane Ian for the three and nine months ended September 30, 2022. (2) Included approximately $1.40 billion and $185 million of ceded losses related to the Nationwide Catastrophe Reinsurance Program and the National Flood Insurance Program, respectively, for the nine months ended September 30, 2021. |
Schedule of reinsurance recoverable for paid and unpaid claims | Reinsurance and indemnification recoverables Reinsurance and indemnification recoverables, net ($ in millions) September 30, 2022 December 31, 2021 Property and casualty Paid and due from reinsurers and indemnitors $ 264 $ 391 Unpaid losses estimated (including IBNR) 9,556 9,479 Total property and casualty $ 9,820 $ 9,870 Accident and health insurance 141 154 Total $ 9,961 $ 10,024 |
Rollforward of credit loss allowance for reinsurance recoverables | Rollforward of credit loss allowance for reinsurance recoverables ($ in millions) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Property and casualty (1) (2) Beginning balance $ (66) $ (60) $ (66) $ (59) Increase in the provision for credit losses (5) (6) (5) (7) Write-offs 9 — 9 — Ending balance $ (62) $ (66) $ (62) $ (66) Accident and health insurance Beginning balance $ (8) $ (1) $ (8) $ (1) Increase in the provision for credit losses — — — — Write-offs — — — — Ending balance $ (8) $ (1) $ (8) $ (1) (1) Primarily related to Run-off Property-Liability reinsurance ceded. (2) Indemnification recoverables are considered collectible based on the industry pool and facility enabling legislation. |
Company Restructuring (Tables)
Company Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring programs | Future work environment ($ in millions) Expected program charges $ 110 2021 expenses (131) 2022 expenses (13) Change in estimated program costs 44 Remaining program charges $ 10 |
Schedule of changes in the restructuring liability | Restructuring activity during the period ($ in millions) Employee costs Exit costs Total liability Restructuring liability as of December 31, 2021 $ 14 $ 7 $ 21 Expense incurred 18 17 35 Adjustments to liability (8) — (8) Payments and non-cash charges (6) (17) (23) Restructuring liability as of September 30, 2022 $ 18 $ 7 $ 25 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Company's pension and postretirement benefit plans | Components of net cost (benefit) for pension and other postretirement plans Three months ended September 30, Nine months ended September 30, ($ in millions) 2022 2021 2022 2021 Pension benefits Service cost $ 22 $ 27 $ 79 $ 78 Interest cost 59 47 157 145 Expected return on plan assets (85) (112) (295) (338) Amortization of prior service credit (2) (13) (27) (38) Costs and expenses (6) (51) (86) (153) Remeasurement of projected benefit obligation (254) (25) (1,427) (292) Remeasurement of plan assets 335 68 1,563 (99) Remeasurement (gains) losses 81 43 136 (391) Pension net cost (benefit) $ 75 $ (8) $ 50 $ (544) Postretirement benefits Service cost $ — $ — $ 1 $ 1 Interest cost 3 2 7 6 Amortization of prior service credit (7) (5) (19) (18) Costs and expenses (4) (3) (11) (11) Remeasurement of projected benefit obligation (2) (3) (45) (13) Remeasurement of plan assets — — — — Remeasurement (gains) losses (2) (3) (45) (13) Postretirement net benefit $ (6) $ (6) $ (56) $ (24) Pension and postretirement benefits Costs and expenses $ (10) $ (54) $ (97) $ (164) Remeasurement (gains) losses 79 40 91 (404) Total net cost (benefit) $ 69 $ (14) $ (6) $ (568) Pension and postretirement benefits remeasurement gains and losses Three months ended September 30, Nine months ended September 30, ($ in millions) 2022 2021 2022 2021 Remeasurement of projected benefit obligation (gains) losses: Discount rate $ (284) $ (32) $ (1,289) $ (271) Other assumptions 28 4 (183) (34) Remeasurement of plan assets (gains) losses 335 68 1,563 (99) Remeasurement (gains) losses $ 79 $ 40 $ 91 $ (404) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of supplemental cash flow information from collateralized securities received | The accompanying cash flows are included in cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows along with the activities resulting from management of the proceeds, as follows: ($ in millions) Nine months ended September 30, 2022 2021 Net change in proceeds managed Net change in fixed income securities $ (473) $ — Net change in short-term investments (285) (579) Operating cash flow (used) (758) (579) Net change in cash 1 12 Net change in proceeds managed $ (757) $ (567) Cash flows from operating activities Net change in liabilities Liabilities for collateral, beginning of period $ (1,444) $ (914) Liabilities for collateral, end of period (2,201) (1,481) Operating cash flow provided $ 757 $ 567 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Other comprehensive income (loss) on a pre-tax and after-tax basis | Components of other comprehensive income (loss) on a pre-tax and after-tax basis ($ in millions) Three months ended September 30, 2022 2021 Pre-tax Tax After-tax Pre-tax Tax After-tax Unrealized net holding gains and losses arising during the period, net of related offsets $ (1,161) $ 246 $ (915) $ (343) $ 73 $ (270) Less: reclassification adjustment of realized capital gains and losses (159) 33 (126) 84 (18) 66 Unrealized net capital gains and losses (1,002) 213 (789) (427) 91 (336) Unrealized foreign currency translation adjustments (112) 24 (88) (26) 5 (21) Unamortized pension and other postretirement prior service credit (1) (9) 1 (8) (19) 4 (15) Other comprehensive (loss) income $ (1,123) $ 238 $ (885) $ (472) $ 100 $ (372) Nine months ended September 30, 2022 2021 Pre-tax Tax After-tax Pre-tax Tax After-tax Unrealized net holding gains and losses arising during the period, net of related offsets $ (5,081) $ 1,080 $ (4,001) $ (1,350) $ 288 $ (1,062) Less: reclassification adjustment of realized capital gains and losses (602) 126 (476) 367 (77) 290 Unrealized net capital gains and losses (4,479) 954 (3,525) (1,717) 365 (1,352) Unrealized foreign currency translation adjustments (171) 36 (135) 13 (3) 10 Unamortized pension and other postretirement prior service credit (1) (47) 9 (38) (56) 12 (44) Other comprehensive (loss) income $ (4,697) $ 999 $ (3,698) $ (1,760) $ 374 $ (1,386) (1) Represents prior service credits reclassified out of other comprehensive income and amortized into operating costs and expenses. |
General (Details)
General (Details) - USD ($) $ in Millions | 3 Months Ended | |||||||
Oct. 18, 2022 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Decrease to equity | $ (17,561) | $ (25,127) | $ (26,707) | |||||
Subsequent Event | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Proceeds from sale of headquarters | $ 232 | |||||||
Forecast | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Gain on sale of headquarters | $ 99 | |||||||
Accumlated Other Comprehensive Income | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Decrease to equity | 3,043 | $ 2,158 | (655) | (1,918) | $ (2,290) | $ (3,304) | ||
Retained income | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Decrease to equity | $ (51,490) | $ (52,412) | $ (53,294) | $ (52,736) | $ (52,464) | $ (52,767) | ||
Minimum | Forecast | Cumulative effect of change in accounting principle | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Decrease to equity | 250 | |||||||
Minimum | Accumlated Other Comprehensive Income | Forecast | Cumulative effect of change in accounting principle | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Decrease to equity | 235 | |||||||
Minimum | Retained income | Forecast | Cumulative effect of change in accounting principle | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Decrease to equity | 15 | |||||||
Maximum | Forecast | Cumulative effect of change in accounting principle | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Decrease to equity | 350 | |||||||
Maximum | Accumlated Other Comprehensive Income | Forecast | Cumulative effect of change in accounting principle | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Decrease to equity | 315 | |||||||
Maximum | Retained income | Forecast | Cumulative effect of change in accounting principle | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Decrease to equity | 35 | |||||||
Allstate Protection | Forecast | Net Gains (Losses) On Investments And Derivatives | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Gain on sale of headquarters | 16 | |||||||
Corporate Segment | Forecast | Other Income | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Gain on sale of headquarters | $ 83 |
Earnings per Common Share - Com
Earnings per Common Share - Computation earnings per common share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator: | ||||
Net (loss) income from continuing operations | $ (683) | $ 206 | $ (1,061) | $ 4,047 |
Less: Net loss attributable to noncontrolling interest | (15) | (7) | (34) | (7) |
Net (loss) income from continuing operations attributable to Allstate | (668) | 213 | (1,027) | 4,054 |
Less: Preferred stock dividends | 26 | 30 | 79 | 87 |
Net (loss) income from continuing operations applicable to common shareholders | (694) | 183 | (1,106) | 3,967 |
Income (loss) from discontinued operations, net of tax | 0 | 325 | 0 | (3,272) |
Net (loss) income applicable to common shareholders | $ (694) | $ 508 | $ (1,106) | $ 695 |
Denominator: | ||||
Weighted average common shares outstanding (in shares) | 268.7 | 293.1 | 273.5 | 298.1 |
Effect of dilutive potential common shares | ||||
Stock options (in shares) | 0 | 3.1 | 0 | 2.9 |
Restricted stock units (non-participating) and performance stock awards (in shares) | 0 | 1.7 | 0 | 1.6 |
Weighted average common and dilutive potential common shares outstanding (in shares) | 268.7 | 297.9 | 273.5 | 302.6 |
Basic | ||||
Continuing operations (in dollars per share) | $ (2.58) | $ 0.62 | $ (4.04) | $ 13.31 |
Discontinued operations (in dollars per share) | 0 | 1.11 | 0 | (10.98) |
Earnings per common share applicable to common shareholders - Basic (in dollars per share) | (2.58) | 1.73 | (4.04) | 2.33 |
Diluted | ||||
Continuing operations (in dollars per share) | (2.58) | 0.62 | (4.04) | 13.11 |
Discontinued operations (in dollars per share) | 0 | 1.09 | 0 | (10.81) |
Earnings per common share applicable to common shareholders - Diluted (in dollars per share) | $ (2.58) | $ 1.71 | $ (4.04) | $ 2.30 |
Anti-dilutive options excluded from diluted earnings per common share (in shares) | 2.4 | 0.6 | 1.6 | 1.3 |
Weighted average dilutive potential common shares excluded due to net loss applicable to common shareholders (in shares) | 2.9 | 0 | 3.3 | 0 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Assets and liabilities recognized in acquisition (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Jan. 04, 2021 |
Assets | |||
Goodwill | $ 3,502 | $ 3,502 | |
National General Holdings Corp. | |||
Assets | |||
Investments | $ 4,962 | ||
Cash | 400 | ||
Premiums and other receivables, net | 1,539 | ||
Deferred acquisition costs (value of business acquired) | 317 | ||
Reinsurance recoverables, net | 1,212 | ||
Intangible assets | 1,199 | ||
Other assets | 734 | ||
Goodwill | 1,038 | ||
Total assets | 11,401 | ||
Liabilities | |||
Reserve for property and casualty insurance claims and claims expense | 2,765 | ||
Reserve for future policy benefits | 186 | ||
Unearned premiums | 2,245 | ||
Reinsurance payable | 363 | ||
Debt | 593 | ||
Deferred tax liabilities | 162 | ||
Other liabilities | 776 | ||
Total liabilities | $ 7,090 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Narrative (Details) $ in Millions | 9 Months Ended | ||||||
Nov. 01, 2021 USD ($) | Oct. 01, 2021 USD ($) state | Mar. 15, 2021 USD ($) | Feb. 03, 2021 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 04, 2021 USD ($) | |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 3,502 | $ 3,502 | |||||
Long-term debt | $ 7,967 | $ 7,976 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Allstate Life Insurance Company Of New York | |||||||
Business Acquisition [Line Items] | |||||||
Definitive agreement with Wilton Reassurance | $ 400 | ||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Allstate Life Insurance Company | |||||||
Business Acquisition [Line Items] | |||||||
Proceeds from affiliates | $ 4,000 | ||||||
Pre-close dividend | $ 1,250 | ||||||
Subordinated Debt | |||||||
Business Acquisition [Line Items] | |||||||
Repaid of subordinated notes | $ 72 | $ 100 | |||||
Subsequent acquisition (in percentage) | 7.625% | ||||||
Senior Notes | |||||||
Business Acquisition [Line Items] | |||||||
Subsequent acquisition (in percentage) | 6.75% | ||||||
Long-term debt | $ 350 | ||||||
National General Holdings Corp. | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 1,038 | ||||||
Purchase accounting fair value adjustment | $ 31 | ||||||
National General Holdings Corp. | Allstate Protection | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 675 | ||||||
National General Holdings Corp. | Protection Services | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 20 | ||||||
National General Holdings Corp. | Allstate Health and Benefits | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 343 | ||||||
SafeAuto | |||||||
Business Acquisition [Line Items] | |||||||
Number of states acquiree operates in | state | 28 | ||||||
Cash to acquire businesses | $ 267 |
Acquisitions and Dispositions_3
Acquisitions and Dispositions - Financial results from discontinued operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Costs and expenses | ||||
Income from discontinued operations before income tax expense | $ 0 | $ 235 | $ 0 | $ (3,435) |
Income tax expense | 0 | (90) | 0 | (163) |
Income (loss) from discontinued operations, net of tax | $ 0 | 325 | $ 0 | (3,272) |
Discontinued Operations, Held-for-sale | ||||
Revenues | ||||
Life premiums and contract charges | 331 | 1,007 | ||
Net investment income | 427 | 1,251 | ||
Net gains (losses) on investments and derivatives | 4 | 193 | ||
Total revenues | 762 | 2,451 | ||
Costs and expenses | ||||
Life contract benefits | 411 | 1,207 | ||
Interest credited to contractholder funds | 127 | 371 | ||
Amortization of DAC | 27 | 84 | ||
Operating costs and expenses | 45 | 151 | ||
Restructuring and related charges | 7 | 30 | ||
Total costs and expenses | 617 | 1,843 | ||
Amortization of deferred gain on reinsurance | 1 | 5 | ||
Income from discontinued operations before income tax expense | 146 | 613 | ||
Income tax expense | 38 | 131 | ||
Income from discontinued operations, net of tax | 108 | 482 | ||
Loss on disposition of operations | 89 | (4,048) | ||
Income tax benefit | (128) | (294) | ||
Loss on disposition of operations, net of tax | 217 | (3,754) | ||
Income (loss) from discontinued operations, net of tax | $ 325 | $ (3,272) |
Acquisitions and Dispositions_4
Acquisitions and Dispositions - Cash flows from discontinued operations (Details) - Discontinued Operations, Held-for-sale $ in Millions | 9 Months Ended |
Sep. 30, 2021 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Net cash provided by operating activities from discontinued operations | $ 888 |
Net cash used in investing activities from discontinued operations | $ (405) |
Reportable Segments - Financial
Reportable Segments - Financial performance (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information | ||||
Property-Liability net investment income | $ 690 | $ 764 | $ 1,846 | $ 2,446 |
Net gains (losses) on investments and derivatives | (167) | 105 | (1,167) | 818 |
Pension and other postretirement remeasurement gains (losses) | (79) | (40) | (91) | 404 |
Income (loss) from discontinued operations | 0 | 235 | 0 | (3,435) |
Income tax benefit from discontinued operations | 0 | 90 | 0 | 163 |
Income (loss) from discontinued operations, net of tax | 0 | 325 | 0 | (3,272) |
Less: Net income (loss) attributable to noncontrolling interest | (15) | (7) | (34) | (7) |
Net (loss) income applicable to common shareholders | (694) | 508 | (1,106) | 695 |
Segment Reconciling Items | ||||
Segment Reporting Information | ||||
Adjusted net income (loss) | 598 | 727 | 754 | 2,428 |
Net gains (losses) on investments and derivatives | (167) | 105 | (1,167) | 818 |
Pension and other postretirement remeasurement gains (losses) | (79) | (40) | (91) | 404 |
Business combination expenses and amortization of purchased intangibles | (29) | (34) | (86) | (124) |
Business combination fair value adjustment | 0 | 0 | 0 | 6 |
Gain (loss) on disposition of operations | (5) | 0 | 6 | 0 |
Income tax benefit (expense) on reconciling items | 246 | (14) | 396 | (990) |
Allstate Protection | Operating Segments | ||||
Segment Reporting Information | ||||
Underwriting income (loss) | (1,170) | (421) | (1,749) | 1,670 |
Run-off Property-Liability | Operating Segments | ||||
Segment Reporting Information | ||||
Underwriting income (loss) | (122) | (113) | (127) | (118) |
Property-Liability | ||||
Segment Reporting Information | ||||
Property-Liability net investment income | 632 | 710 | 1,696 | 2,314 |
Net gains (losses) on investments and derivatives | (123) | 94 | (988) | 763 |
Less: Net income (loss) attributable to noncontrolling interest | (15) | (7) | (35) | (7) |
Property-Liability | Operating Segments | ||||
Segment Reporting Information | ||||
Underwriting income (loss) | (1,292) | (534) | (1,876) | 1,552 |
Property-Liability | Segment Reconciling Items | ||||
Segment Reporting Information | ||||
Property-Liability net investment income | 632 | 710 | 1,696 | 2,314 |
Protection Services | Operating Segments | ||||
Segment Reporting Information | ||||
Adjusted net income (loss) | 35 | 45 | 131 | 150 |
Allstate Health and Benefits | ||||
Segment Reporting Information | ||||
Property-Liability net investment income | 17 | 18 | 50 | 56 |
Net gains (losses) on investments and derivatives | (6) | (1) | (25) | 5 |
Allstate Health and Benefits | Operating Segments | ||||
Segment Reporting Information | ||||
Adjusted net income (loss) | 54 | 33 | 172 | 160 |
Corporate and Other | Operating Segments | ||||
Segment Reporting Information | ||||
Adjusted net income (loss) | (104) | (95) | (322) | (330) |
Property-Liability net investment income | 28 | 26 | 66 | 44 |
Net gains (losses) on investments and derivatives | $ (25) | $ 8 | $ (98) | $ 30 |
Reportable Segments - Revenue i
Reportable Segments - Revenue information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information | ||||
Net investment income | $ 690 | $ 764 | $ 1,846 | $ 2,446 |
Net gains (losses) on investments and derivatives | (167) | 105 | (1,167) | 818 |
Consolidated revenues | 13,208 | 12,480 | 37,765 | 37,577 |
Property-Liability | ||||
Segment Reporting Information | ||||
Property and casualty insurance premiums | 11,157 | 10,159 | 32,529 | 30,064 |
Net investment income | 632 | 710 | 1,696 | 2,314 |
Net gains (losses) on investments and derivatives | (123) | 94 | (988) | 763 |
Consolidated revenues | 12,030 | 11,328 | 34,303 | 34,212 |
Property-Liability | Auto | ||||
Segment Reporting Information | ||||
Property and casualty insurance premiums | 7,545 | 6,912 | 21,974 | 20,604 |
Property-Liability | Homeowners | ||||
Segment Reporting Information | ||||
Property and casualty insurance premiums | 2,776 | 2,522 | 8,065 | 7,325 |
Property-Liability | Other personal lines | ||||
Segment Reporting Information | ||||
Property and casualty insurance premiums | 540 | 521 | 1,616 | 1,545 |
Property-Liability | Commercial lines | ||||
Segment Reporting Information | ||||
Property and casualty insurance premiums | 296 | 204 | 874 | 590 |
Allstate Protection | ||||
Segment Reporting Information | ||||
Property and casualty insurance premiums | 11,157 | 10,159 | 32,529 | 30,064 |
Run-off Property-Liability | ||||
Segment Reporting Information | ||||
Property and casualty insurance premiums | 0 | 0 | 0 | 0 |
Protection Services | ||||
Segment Reporting Information | ||||
Intersegment premiums and service fees | 39 | 46 | 118 | 133 |
Net investment income | 13 | 10 | 34 | 32 |
Net gains (losses) on investments and derivatives | (13) | 4 | (56) | 20 |
Consolidated revenues | 627 | 601 | 1,840 | 1,750 |
Protection Services | Protection plans | ||||
Segment Reporting Information | ||||
Insurance premiums, commissions and fees | 330 | 295 | 961 | 834 |
Protection Services | Roadside assistance | ||||
Segment Reporting Information | ||||
Insurance premiums, commissions and fees | 50 | 50 | 152 | 144 |
Protection Services | Finance and insurance products | ||||
Segment Reporting Information | ||||
Insurance premiums, commissions and fees | 124 | 111 | 362 | 324 |
Allstate Health and Benefits | ||||
Segment Reporting Information | ||||
Net investment income | 17 | 18 | 50 | 56 |
Net gains (losses) on investments and derivatives | (6) | (1) | (25) | 5 |
Consolidated revenues | 564 | 562 | 1,700 | 1,671 |
Allstate Health and Benefits | Employer voluntary benefits | ||||
Segment Reporting Information | ||||
Insurance premiums, commissions and fees | 257 | 251 | 780 | 769 |
Allstate Health and Benefits | Group health | ||||
Segment Reporting Information | ||||
Insurance premiums, commissions and fees | 96 | 90 | 285 | 260 |
Allstate Health and Benefits | Individual health | ||||
Segment Reporting Information | ||||
Insurance premiums, commissions and fees | 110 | 119 | 333 | 333 |
Operating Segments | Property-Liability | ||||
Segment Reporting Information | ||||
Insurance premiums, commissions and fees | 364 | 365 | 1,066 | 1,071 |
Operating Segments | Protection Services | ||||
Segment Reporting Information | ||||
Insurance premiums, commissions and fees | 84 | 85 | 269 | 263 |
Operating Segments | Allstate Health and Benefits | ||||
Segment Reporting Information | ||||
Insurance premiums, commissions and fees | 90 | 85 | 277 | 248 |
Operating Segments | Corporate and Other | ||||
Segment Reporting Information | ||||
Insurance premiums, commissions and fees | 23 | 1 | 72 | 3 |
Net investment income | 28 | 26 | 66 | 44 |
Net gains (losses) on investments and derivatives | (25) | 8 | (98) | 30 |
Consolidated revenues | 26 | 35 | 40 | 77 |
Intersegment Eliminations | ||||
Segment Reporting Information | ||||
Consolidated revenues | $ (39) | $ (46) | $ (118) | $ (133) |
Investments - Portfolio composi
Investments - Portfolio composition (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Investments [Abstract] | ||
Total fixed income securities | $ 41,715 | $ 42,136 |
Equity securities, at fair value | 4,723 | 7,061 |
Mortgage loans, net | 833 | 821 |
Limited partnership interests | 7,907 | 8,018 |
Short-term investments, at fair value | 4,030 | 4,009 |
Other investments, net | 1,798 | 2,656 |
Total investments | $ 61,006 | $ 64,701 |
Investments - Amortized cost, g
Investments - Amortized cost, gross unrealized gains and losses and fair value for fixed income securities (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of Available for Sale Securities | ||
Amortized cost, net | $ 45,468 | $ 41,376 |
Gross unrealized, Gains | 12 | 1,002 |
Gross unrealized, Losses | (3,765) | (242) |
Fixed income securities | 41,715 | 42,136 |
U.S. government and agencies | ||
Schedule of Available for Sale Securities | ||
Amortized cost, net | 8,756 | 6,287 |
Gross unrealized, Gains | 1 | 12 |
Gross unrealized, Losses | (313) | (26) |
Fixed income securities | 8,444 | 6,273 |
Municipal | ||
Schedule of Available for Sale Securities | ||
Amortized cost, net | 6,486 | 6,130 |
Gross unrealized, Gains | 4 | 279 |
Gross unrealized, Losses | (461) | (16) |
Fixed income securities | 6,029 | 6,393 |
Corporate | ||
Schedule of Available for Sale Securities | ||
Amortized cost, net | 27,614 | 26,834 |
Gross unrealized, Gains | 3 | 688 |
Gross unrealized, Losses | (2,885) | (192) |
Fixed income securities | 24,732 | 27,330 |
Foreign government | ||
Schedule of Available for Sale Securities | ||
Amortized cost, net | 933 | 982 |
Gross unrealized, Gains | 0 | 9 |
Gross unrealized, Losses | (43) | (6) |
Fixed income securities | 890 | 985 |
ABS | ||
Schedule of Available for Sale Securities | ||
Amortized cost, net | 1,679 | 1,143 |
Gross unrealized, Gains | 4 | 14 |
Gross unrealized, Losses | (63) | (2) |
Fixed income securities | $ 1,620 | $ 1,155 |
Investments - Scheduled maturit
Investments - Scheduled maturities for fixed income securities (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Amortized cost, net | ||
Due in one year or less | $ 2,429 | $ 1,105 |
Due after one year through five years | 26,566 | 21,039 |
Due after five years through ten years | 11,356 | 13,808 |
Due after ten years | 3,438 | 4,281 |
Subtotal | 43,789 | 40,233 |
ABS | 1,679 | 1,143 |
Amortized cost, net | 45,468 | 41,376 |
Fair value | ||
Due in one year or less | 2,398 | 1,111 |
Due after one year through five years | 24,992 | 21,291 |
Due after five years through ten years | 9,738 | 14,079 |
Due after ten years | 2,967 | 4,500 |
Subtotal | 40,095 | 40,981 |
ABS | 1,620 | 1,155 |
Total | $ 41,715 | $ 42,136 |
Investments - Net investment in
Investments - Net investment income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net Investment Income: | ||||
Investment income, before expense | $ 754 | $ 801 | $ 2,017 | $ 2,561 |
Investment expense | (64) | (37) | (171) | (115) |
Net investment income | 690 | 764 | 1,846 | 2,446 |
Fixed income securities | ||||
Net Investment Income: | ||||
Investment income, before expense | 323 | 279 | 889 | 870 |
Equity securities | ||||
Net Investment Income: | ||||
Investment income, before expense | 30 | 24 | 100 | 51 |
Mortgage loans | ||||
Net Investment Income: | ||||
Investment income, before expense | 8 | 9 | 25 | 31 |
Limited partnership interests | ||||
Net Investment Income: | ||||
Investment income, before expense | 325 | 438 | 841 | 1,467 |
Short-term investments | ||||
Net Investment Income: | ||||
Investment income, before expense | 30 | 1 | 42 | 3 |
Other investments | ||||
Net Investment Income: | ||||
Investment income, before expense | $ 38 | $ 50 | $ 120 | $ 139 |
Investments - Realized capital
Investments - Realized capital gains and losses by asset type (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Realized capital gains and losses by asset type | ||||
Net gains (losses) on investments and derivatives | $ (167) | $ 105 | $ (1,167) | $ 818 |
Fixed income securities | ||||
Realized capital gains and losses by asset type | ||||
Net gains (losses) on investments and derivatives | (166) | 86 | (644) | 355 |
Equity securities | ||||
Realized capital gains and losses by asset type | ||||
Net gains (losses) on investments and derivatives | (239) | 6 | (1,222) | 322 |
Mortgage loans | ||||
Realized capital gains and losses by asset type | ||||
Net gains (losses) on investments and derivatives | 1 | 0 | 0 | 19 |
Limited partnership interests | ||||
Realized capital gains and losses by asset type | ||||
Net gains (losses) on investments and derivatives | (49) | (15) | (224) | 1 |
Derivatives | ||||
Realized capital gains and losses by asset type | ||||
Net gains (losses) on investments and derivatives | 299 | 46 | 889 | 54 |
Other investments | ||||
Realized capital gains and losses by asset type | ||||
Net gains (losses) on investments and derivatives | $ (13) | $ (18) | $ 34 | $ 67 |
Investments - Realized capita_2
Investments - Realized capital gains and losses by transaction type (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Investments [Abstract] | ||||
Sales | $ (175) | $ 80 | $ (605) | $ 441 |
Credit losses | (6) | (12) | (30) | 2 |
Valuation change of equity investments | (285) | (9) | (1,421) | 321 |
Valuation change and settlements of derivatives | 299 | 46 | 889 | 54 |
Net gains (losses) on investments and derivatives | $ (167) | $ 105 | $ (1,167) | $ 818 |
Investments - Gross realized ga
Investments - Gross realized gains (losses) on sales of fixed income securities (Details) - Fixed income securities - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Available for Sale Securities | ||||
Gross realized gains | $ 19 | $ 104 | $ 112 | $ 460 |
Gross realized losses | $ (181) | $ (18) | $ (748) | $ (106) |
Investments - Net appreciation
Investments - Net appreciation (decline) recognized in net income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Debt and Equity Securities, FV-NI [Line Items] | ||||
Total | $ (245) | $ 117 | $ (763) | $ 585 |
Equity securities | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Total | (209) | (20) | (771) | 170 |
Limited partnership interests carried at fair value | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Total | $ (36) | $ 137 | $ 8 | $ 415 |
Investments - OTTI losses by as
Investments - OTTI losses by asset type (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Realized capital gains and losses by asset type | ||||
Fixed income securities | $ (6) | $ (12) | $ (30) | $ 2 |
Total credit losses by asset type | (6) | (12) | (30) | 2 |
Commitments to fund commercial mortgage loans and bank loans | 0 | 0 | 0 | 0 |
Fixed income securities | ||||
Realized capital gains and losses by asset type | ||||
Fixed income securities | (4) | 0 | (8) | 1 |
Corporate | ||||
Realized capital gains and losses by asset type | ||||
Fixed income securities | (2) | 0 | (6) | 0 |
ABS | ||||
Realized capital gains and losses by asset type | ||||
Fixed income securities | (2) | 0 | (2) | 1 |
Mortgage loans | ||||
Realized capital gains and losses by asset type | ||||
Total credit losses by asset type | 1 | 0 | 0 | 17 |
Limited partnership interests | ||||
Realized capital gains and losses by asset type | ||||
Total credit losses by asset type | (1) | 0 | (4) | 0 |
Bank loans, net | ||||
Realized capital gains and losses by asset type | ||||
Total credit losses by asset type | (2) | (13) | (18) | (16) |
Agent loans | ||||
Realized capital gains and losses by asset type | ||||
Total credit losses by asset type | $ 0 | $ 1 | $ 0 | $ 0 |
Investments - Unrealized net ca
Investments - Unrealized net capital gains and losses included in AOCI (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Fair value | ||
Fixed income securities | $ 41,715 | $ 42,136 |
Short-term investments | 4,030 | 4,009 |
Derivative instruments | 0 | 0 |
Gross unrealized Gains | ||
Fixed income securities | 12 | 1,002 |
Short-term investments | 0 | 0 |
Derivative instruments | 0 | 0 |
Gross unrealized Losses | ||
Fixed income securities | (3,765) | (242) |
Short-term investments | (1) | 0 |
Derivative instruments | (3) | (3) |
Unrealized net gains (losses) | ||
Fixed income securities | (3,753) | 760 |
Short-term investments | (1) | 0 |
Derivative instruments | (3) | (3) |
Equity method of accounting limited partnerships | 7 | (1) |
Unrealized net capital gains and losses, pre-tax | (3,750) | 756 |
Amounts recognized for: | ||
Other unrealized net capital gains and losses, pre-tax | 32 | 5 |
Deferred income taxes | 791 | (163) |
Unrealized net capital gains and losses, after-tax | $ (2,927) | $ 598 |
Investments - Change in unreali
Investments - Change in unrealized net capital gains and losses (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) | |
Change in unrealized net capital gains and losses | $ (4,506) |
Amounts recognized for: | |
Other unrealized net capital gains and losses, pre-tax | 27 |
Deferred income taxes | 954 |
Decrease in unrealized net capital gains and losses, after-tax | (3,525) |
EMA limited partnerships | |
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) | |
Change in unrealized net capital gains and losses | 8 |
Fixed income securities | |
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) | |
Change in unrealized net capital gains and losses | (4,513) |
Short-term investments | |
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) | |
Change in unrealized net capital gains and losses | (1) |
Derivative instruments | |
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) | |
Change in unrealized net capital gains and losses | $ 0 |
Investments - Carrying value fo
Investments - Carrying value for limited partnership interests (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Limited partnership interests | $ 7,907 | $ 8,018 |
EMA | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Limited partnership interests | 6,589 | 6,487 |
Fair Value | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Limited partnership interests | 1,318 | 1,531 |
Private equity | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Limited partnership interests | 6,567 | 6,339 |
Private equity | EMA | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Limited partnership interests | 5,287 | 4,905 |
Private equity | Fair Value | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Limited partnership interests | 1,280 | 1,434 |
Real estate | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Limited partnership interests | 919 | 920 |
Real estate | EMA | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Limited partnership interests | 881 | 823 |
Real estate | Fair Value | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Limited partnership interests | 38 | 97 |
Other | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Limited partnership interests | 421 | 759 |
Other | EMA | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Limited partnership interests | 421 | 759 |
Other | Fair Value | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Limited partnership interests | $ 0 | $ 0 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of Available for Sale Securities | ||
Short-term investments | $ 4,030 | $ 4,009 |
Accrued investment income | 389 | 339 |
Fixed income securities | ||
Schedule of Available for Sale Securities | ||
Accrued investment income | $ 359 | $ 311 |
Investments - Other investments
Investments - Other investments by type (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Investments [Line Items] | ||
Other investments | $ 1,798 | $ 2,656 |
Bank loans, net | ||
Investments [Line Items] | ||
Other investments | 748 | 1,574 |
Real estate | ||
Investments [Line Items] | ||
Other investments | 774 | 809 |
Policy loans | ||
Investments [Line Items] | ||
Other investments | 119 | 148 |
Derivatives | ||
Investments [Line Items] | ||
Other investments | 48 | 12 |
Other | ||
Investments [Line Items] | ||
Other investments | $ 109 | $ 113 |
Investments - Rollforward of cr
Investments - Rollforward of credit loss allowance for fixed income securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Fixed income securities | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Beginning balance | $ (10) | $ (2) | $ (6) | $ (3) |
Credit losses on securities for which credit losses not previously reported | (2) | 0 | (2) | 0 |
Net (increases) decreases related to credit losses previously reported | (2) | 0 | (6) | 1 |
Reduction of allowance related to sales | 1 | 0 | 1 | 0 |
Write-offs | 0 | 0 | 0 | 0 |
Ending balance | (13) | (2) | (13) | (2) |
Fixed income securities | 13 | 2 | 13 | 2 |
Corporate | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Ending balance | (11) | (1) | (11) | (1) |
Fixed income securities | 11 | 1 | 11 | 1 |
ABS | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Ending balance | (2) | (1) | (2) | (1) |
Fixed income securities | $ 2 | $ 1 | $ 2 | $ 1 |
Investments - Gross unrealized
Investments - Gross unrealized losses and fair value by the type and length of time held in continuous unrealized loss position (Details) $ in Millions | Sep. 30, 2022 USD ($) contract | Dec. 31, 2021 USD ($) contract |
U.S. government and agencies | ||
Less than 12 months | ||
Number of issues | contract | 137 | 112 |
Fair value | $ 6,980 | $ 5,451 |
Unrealized losses | $ (231) | $ (24) |
12 months or more | ||
Number of issues | contract | 53 | 4 |
Fair value | $ 1,428 | $ 72 |
Unrealized losses | (82) | (2) |
Total unrealized losses | ||
Total unrealized losses | $ (313) | $ (26) |
Municipal | ||
Less than 12 months | ||
Number of issues | contract | 3,880 | 767 |
Fair value | $ 5,508 | $ 1,213 |
Unrealized losses | $ (400) | $ (15) |
12 months or more | ||
Number of issues | contract | 289 | 2 |
Fair value | $ 341 | $ 14 |
Unrealized losses | (61) | (1) |
Total unrealized losses | ||
Total unrealized losses | $ (461) | $ (16) |
Corporate | ||
Less than 12 months | ||
Number of issues | contract | 2,611 | 1,197 |
Fair value | $ 21,603 | $ 9,725 |
Unrealized losses | $ (2,305) | $ (176) |
12 months or more | ||
Number of issues | contract | 515 | 22 |
Fair value | $ 2,879 | $ 130 |
Unrealized losses | (580) | (16) |
Total unrealized losses | ||
Total unrealized losses | $ (2,885) | $ (192) |
Foreign government | ||
Less than 12 months | ||
Number of issues | contract | 80 | 51 |
Fair value | $ 744 | $ 415 |
Unrealized losses | $ (27) | $ (6) |
12 months or more | ||
Number of issues | contract | 42 | 4 |
Fair value | $ 141 | $ 3 |
Unrealized losses | (16) | 0 |
Total unrealized losses | ||
Total unrealized losses | $ (43) | $ (6) |
ABS | ||
Less than 12 months | ||
Number of issues | contract | 269 | 80 |
Fair value | $ 1,484 | $ 500 |
Unrealized losses | $ (58) | $ (2) |
12 months or more | ||
Number of issues | contract | 62 | 53 |
Fair value | $ 36 | $ 8 |
Unrealized losses | (5) | 0 |
Total unrealized losses | ||
Total unrealized losses | $ (63) | $ (2) |
Fixed income securities | ||
Less than 12 months | ||
Number of issues | contract | 6,977 | 2,207 |
Fair value | $ 36,319 | $ 17,304 |
Unrealized losses | $ (3,021) | $ (223) |
12 months or more | ||
Number of issues | contract | 961 | 85 |
Fair value | $ 4,825 | $ 227 |
Unrealized losses | (744) | (19) |
Total unrealized losses | ||
Total unrealized losses | $ (3,765) | $ (242) |
Investment grade fixed income securities | ||
Less than 12 months | ||
Number of issues | contract | 6,313 | 1,993 |
Fair value | $ 32,385 | $ 15,391 |
Unrealized losses | $ (2,346) | $ (188) |
12 months or more | ||
Number of issues | contract | 902 | 71 |
Fair value | $ 4,474 | $ 183 |
Unrealized losses | (643) | (8) |
Total unrealized losses | ||
Total unrealized losses | $ (2,989) | $ (196) |
Below investment grade fixed income securities | ||
Less than 12 months | ||
Number of issues | contract | 664 | 214 |
Fair value | $ 3,934 | $ 1,913 |
Unrealized losses | $ (675) | $ (35) |
12 months or more | ||
Number of issues | contract | 59 | 14 |
Fair value | $ 351 | $ 44 |
Unrealized losses | (101) | (11) |
Total unrealized losses | ||
Total unrealized losses | $ (776) | $ (46) |
Investments - Gross unrealize_2
Investments - Gross unrealized losses by unrealized loss position and credit quality (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Investment grade fixed income securities | ||
Investments [Line Items] | ||
Fixed income securities with unrealized loss position less than 20% of amortized cost, net | $ (2,422,000,000) | |
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost, net | (567,000,000) | |
Total unrealized losses | 2,989,000,000 | $ 196,000,000 |
Below investment grade fixed income securities | ||
Investments [Line Items] | ||
Fixed income securities with unrealized loss position less than 20% of amortized cost, net | (439,000,000) | |
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost, net | (337,000,000) | |
Total unrealized losses | 776,000,000 | 46,000,000 |
Unrealized losses having loss of less than twenty percent | (419,000,000) | |
Unrealized losses | 0 | |
Fixed income securities | ||
Investments [Line Items] | ||
Fixed income securities with unrealized loss position less than 20% of amortized cost, net | (2,861,000,000) | |
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost, net | (904,000,000) | |
Total unrealized losses | $ 3,765,000,000 | $ 242,000,000 |
Investments - Accrued Interest
Investments - Accrued Interest (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of Available for Sale Securities | ||
Accrued investment income | $ 389 | $ 339 |
Mortgage loans | ||
Schedule of Available for Sale Securities | ||
Accrued investment income | 3 | 2 |
Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Accrued investment income | $ 4 | $ 4 |
Investments - Mortgage loans am
Investments - Mortgage loans amortized cost by debt service coverage ratio distribution and year of origination (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost, net | $ 833 | $ 821 |
Mortgage loans | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 839 | 827 |
Allowance | (6) | (6) |
Amortized cost, net | 833 | 821 |
Mortgage loans | 2017 and prior | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 125 | |
Mortgage loans | 2018 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 106 | |
Mortgage loans | 2019 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 239 | |
Mortgage loans | 2020 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 51 | |
Mortgage loans | 2021 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 217 | |
Mortgage loans | Current | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 101 | |
Below 1.0 | Mortgage loans | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 18 | 0 |
Below 1.0 | Mortgage loans | 2017 and prior | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 0 | |
Below 1.0 | Mortgage loans | 2018 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 0 | |
Below 1.0 | Mortgage loans | 2019 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 0 | |
Below 1.0 | Mortgage loans | 2020 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 0 | |
Below 1.0 | Mortgage loans | 2021 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 0 | |
Below 1.0 | Mortgage loans | Current | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 18 | |
1.0 - 1.25 | Mortgage loans | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 67 | 46 |
1.0 - 1.25 | Mortgage loans | 2017 and prior | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 35 | |
1.0 - 1.25 | Mortgage loans | 2018 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 0 | |
1.0 - 1.25 | Mortgage loans | 2019 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 0 | |
1.0 - 1.25 | Mortgage loans | 2020 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 10 | |
1.0 - 1.25 | Mortgage loans | 2021 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 0 | |
1.0 - 1.25 | Mortgage loans | Current | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 22 | |
1.26 - 1.50 | Mortgage loans | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 128 | 160 |
1.26 - 1.50 | Mortgage loans | 2017 and prior | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 13 | |
1.26 - 1.50 | Mortgage loans | 2018 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 5 | |
1.26 - 1.50 | Mortgage loans | 2019 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 103 | |
1.26 - 1.50 | Mortgage loans | 2020 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 0 | |
1.26 - 1.50 | Mortgage loans | 2021 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 0 | |
1.26 - 1.50 | Mortgage loans | Current | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 7 | |
Above 1.50 | Mortgage loans | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 626 | $ 621 |
Above 1.50 | Mortgage loans | 2017 and prior | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 77 | |
Above 1.50 | Mortgage loans | 2018 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 101 | |
Above 1.50 | Mortgage loans | 2019 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 136 | |
Above 1.50 | Mortgage loans | 2020 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 41 | |
Above 1.50 | Mortgage loans | 2021 | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | 217 | |
Above 1.50 | Mortgage loans | Current | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost before allowance | $ 54 |
Investments - Rollforward of _2
Investments - Rollforward of credit loss allowance for mortgage loans (Details) - Mortgage loans - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Beginning balance | $ (7) | $ (30) | $ (6) | $ (67) |
Net (increases) decreases related to credit losses | 1 | 2 | 0 | 39 |
Write-offs | 0 | 0 | 0 | 0 |
Ending balance | $ (6) | (28) | $ (6) | (28) |
Discontinued Operations, Held-for-sale | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Ending balance | $ (21) | $ (21) |
Investments - Bank loans amorti
Investments - Bank loans amortized cost by credit quality and year of origination (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of Available for Sale Securities | ||
Amortized cost, net | $ 833 | $ 821 |
Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 800 | 1,635 |
Allowance | (52) | (61) |
Amortized cost, net | 748 | 1,574 |
NAIC 2 / BBB | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 49 | 86 |
NAIC 3 / BB | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 295 | 656 |
NAIC 4 / B | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 361 | 768 |
NAIC 5-6/ CCC and below | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 95 | $ 125 |
2017 and prior | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 38 | |
2017 and prior | NAIC 2 / BBB | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 0 | |
2017 and prior | NAIC 3 / BB | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 9 | |
2017 and prior | NAIC 4 / B | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 8 | |
2017 and prior | NAIC 5-6/ CCC and below | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 21 | |
2018 | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 26 | |
2018 | NAIC 2 / BBB | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 0 | |
2018 | NAIC 3 / BB | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 0 | |
2018 | NAIC 4 / B | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 16 | |
2018 | NAIC 5-6/ CCC and below | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 10 | |
2019 | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 72 | |
2019 | NAIC 2 / BBB | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 7 | |
2019 | NAIC 3 / BB | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 7 | |
2019 | NAIC 4 / B | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 18 | |
2019 | NAIC 5-6/ CCC and below | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 40 | |
2020 | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 34 | |
2020 | NAIC 2 / BBB | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 5 | |
2020 | NAIC 3 / BB | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 3 | |
2020 | NAIC 4 / B | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 18 | |
2020 | NAIC 5-6/ CCC and below | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 8 | |
2021 | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 581 | |
2021 | NAIC 2 / BBB | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 37 | |
2021 | NAIC 3 / BB | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 262 | |
2021 | NAIC 4 / B | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 271 | |
2021 | NAIC 5-6/ CCC and below | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 11 | |
Current | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 49 | |
Current | NAIC 2 / BBB | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 0 | |
Current | NAIC 3 / BB | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 14 | |
Current | NAIC 4 / B | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | 30 | |
Current | NAIC 5-6/ CCC and below | Bank loans, net | ||
Schedule of Available for Sale Securities | ||
Amortized cost before allowance | $ 5 |
Investments - Rollforward of _3
Investments - Rollforward of credit loss allowance for bank loans (Details) - Bank loans, net - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Beginning balance | $ (56) | $ (52) | $ (61) | $ (67) |
Net increases related to credit losses | (2) | (14) | (18) | (10) |
Reduction of allowance related to sales | 6 | 2 | 27 | 13 |
Write-offs | 0 | 0 | 0 | 0 |
Ending balance | $ (52) | (64) | $ (52) | (64) |
Discontinued Operations, Held-for-sale | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Ending balance | $ (7) | $ (7) |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Fair value of assets and liabilities measured on recurring and non-recurring basis | ||
Fixed income securities | $ 41,715 | $ 42,136 |
Assets at fair value | 50,659 | 53,318 |
Fixed Income Securities Valued Based on Nonbinding Broker Quotes | ||
Fair value of assets and liabilities measured on recurring and non-recurring basis | ||
Assets at fair value | 70 | 41 |
Municipal Not Rated by Third Party Credit Rating Agencies | ||
Fair value of assets and liabilities measured on recurring and non-recurring basis | ||
Assets at fair value | 17 | 16 |
Significant unobservable inputs (Level 3) | ||
Fair value of assets and liabilities measured on recurring and non-recurring basis | ||
Assets at fair value | 668 | 597 |
Recurring basis | ||
Fair value of assets and liabilities measured on recurring and non-recurring basis | ||
Fixed income securities | 41,715 | 42,136 |
Assets at fair value | 50,636 | 53,286 |
Recurring basis | Significant unobservable inputs (Level 3) | ||
Fair value of assets and liabilities measured on recurring and non-recurring basis | ||
Fixed income securities | 206 | 144 |
Assets at fair value | 645 | $ 565 |
Limited partnership interests | ||
Fair value of assets and liabilities measured on recurring and non-recurring basis | ||
Commitments to invest in limited partnership interests | $ 215 | |
Limited partnership interests | Minimum | ||
Fair value of assets and liabilities measured on recurring and non-recurring basis | ||
Investment assets, useful life (in years) | 10 years | |
Limited partnership interests | Maximum | ||
Fair value of assets and liabilities measured on recurring and non-recurring basis | ||
Investment assets, useful life (in years) | 12 years |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Assets and liabilities measured at fair value on a recurring and non-recurring basis (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Total fixed income securities | $ 41,715 | $ 42,136 |
Equity securities | 4,723 | 7,061 |
Short-term investments | 4,030 | 4,009 |
Other investments | 1,798 | 2,656 |
Total assets at fair value | 50,659 | 53,318 |
Counterparty and cash collateral netting | $ (59) | $ (22) |
% of total assets at fair value | (0.10%) | 0% |
Total | $ 51,977 | $ 54,849 |
Liabilities | ||
% of total liabilities at fair value | 14.60% | (87.50%) |
Fair value | ||
Assets | ||
% of total assets at fair value | 100% | 100% |
Liabilities | ||
% of total liabilities at fair value | 100% | 100% |
U.S. government and agencies | ||
Assets | ||
Total fixed income securities | $ 8,444 | $ 6,273 |
Municipal | ||
Assets | ||
Total fixed income securities | 6,029 | 6,393 |
Foreign government | ||
Assets | ||
Total fixed income securities | 890 | 985 |
ABS | ||
Assets | ||
Total fixed income securities | 1,620 | 1,155 |
Quoted prices in active markets for identical assets (Level 1) | ||
Assets | ||
Total assets at fair value | $ 13,458 | $ 13,700 |
% of total assets at fair value | 26.60% | 25.70% |
Liabilities | ||
% of total liabilities at fair value | 18.70% | 37.50% |
Significant other observable inputs (Level 2) | ||
Assets | ||
Total assets at fair value | $ 36,592 | $ 39,043 |
% of total assets at fair value | 72.20% | 73.20% |
Liabilities | ||
% of total liabilities at fair value | 66.70% | 150% |
Significant unobservable inputs (Level 3) | ||
Assets | ||
Total assets at fair value | $ 668 | $ 597 |
% of total assets at fair value | 1.30% | 1.10% |
Liabilities | ||
% of total liabilities at fair value | 0% | 0% |
Fair Value Net Asset Value | ||
Assets | ||
Investments reported at NAV | $ 1,318 | $ 1,531 |
Recurring basis | ||
Assets | ||
Total fixed income securities | 41,715 | 42,136 |
Equity securities | 4,723 | 7,061 |
Short-term investments | 4,030 | 4,009 |
Other investments | 50 | 14 |
Other investments | (59) | (22) |
Other assets | 118 | 66 |
Total assets at fair value | 50,636 | 53,286 |
Counterparty and cash collateral netting | (59) | (22) |
Liabilities | ||
Other liabilities | (48) | (8) |
Other liabilities | (7) | 7 |
Total recurring basis liabilities | (48) | (8) |
Counterparty and cash collateral netting | (7) | 7 |
Recurring basis | U.S. government and agencies | ||
Assets | ||
Total fixed income securities | 8,444 | 6,273 |
Recurring basis | Municipal | ||
Assets | ||
Total fixed income securities | 6,029 | 6,393 |
Recurring basis | Corporate - public | ||
Assets | ||
Total fixed income securities | 16,819 | 16,589 |
Recurring basis | Corporate - privately placed | ||
Assets | ||
Total fixed income securities | 7,913 | 10,741 |
Recurring basis | Foreign government | ||
Assets | ||
Total fixed income securities | 890 | 985 |
Recurring basis | ABS | ||
Assets | ||
Total fixed income securities | 1,620 | 1,155 |
Recurring basis | Quoted prices in active markets for identical assets (Level 1) | ||
Assets | ||
Total fixed income securities | 8,424 | 6,247 |
Equity securities | 4,092 | 6,312 |
Short-term investments | 928 | 1,140 |
Other investments | 0 | 0 |
Other assets | 14 | 1 |
Total assets at fair value | 13,458 | 13,700 |
Liabilities | ||
Other liabilities | (9) | (3) |
Total recurring basis liabilities | (9) | (3) |
Recurring basis | Quoted prices in active markets for identical assets (Level 1) | U.S. government and agencies | ||
Assets | ||
Total fixed income securities | 8,424 | 6,247 |
Recurring basis | Quoted prices in active markets for identical assets (Level 1) | Municipal | ||
Assets | ||
Total fixed income securities | 0 | 0 |
Recurring basis | Quoted prices in active markets for identical assets (Level 1) | Corporate - public | ||
Assets | ||
Total fixed income securities | 0 | 0 |
Recurring basis | Quoted prices in active markets for identical assets (Level 1) | Corporate - privately placed | ||
Assets | ||
Total fixed income securities | 0 | 0 |
Recurring basis | Quoted prices in active markets for identical assets (Level 1) | Foreign government | ||
Assets | ||
Total fixed income securities | 0 | 0 |
Recurring basis | Quoted prices in active markets for identical assets (Level 1) | ABS | ||
Assets | ||
Total fixed income securities | 0 | 0 |
Recurring basis | Significant other observable inputs (Level 2) | ||
Assets | ||
Total fixed income securities | 33,085 | 35,745 |
Equity securities | 304 | 400 |
Short-term investments | 3,096 | 2,864 |
Other investments | 107 | 34 |
Other assets | 0 | 0 |
Total assets at fair value | 36,592 | 39,043 |
Liabilities | ||
Other liabilities | (32) | (12) |
Total recurring basis liabilities | (32) | (12) |
Recurring basis | Significant other observable inputs (Level 2) | U.S. government and agencies | ||
Assets | ||
Total fixed income securities | 20 | 26 |
Recurring basis | Significant other observable inputs (Level 2) | Municipal | ||
Assets | ||
Total fixed income securities | 6,010 | 6,375 |
Recurring basis | Significant other observable inputs (Level 2) | Corporate - public | ||
Assets | ||
Total fixed income securities | 16,751 | 16,569 |
Recurring basis | Significant other observable inputs (Level 2) | Corporate - privately placed | ||
Assets | ||
Total fixed income securities | 7,842 | 10,675 |
Recurring basis | Significant other observable inputs (Level 2) | Foreign government | ||
Assets | ||
Total fixed income securities | 890 | 985 |
Recurring basis | Significant other observable inputs (Level 2) | ABS | ||
Assets | ||
Total fixed income securities | 1,572 | 1,115 |
Recurring basis | Significant unobservable inputs (Level 3) | ||
Assets | ||
Total fixed income securities | 206 | 144 |
Equity securities | 327 | 349 |
Short-term investments | 6 | 5 |
Other investments | 2 | 2 |
Other assets | 104 | 65 |
Total assets at fair value | 645 | 565 |
Liabilities | ||
Other liabilities | 0 | 0 |
Total recurring basis liabilities | 0 | 0 |
Recurring basis | Significant unobservable inputs (Level 3) | U.S. government and agencies | ||
Assets | ||
Total fixed income securities | 0 | 0 |
Recurring basis | Significant unobservable inputs (Level 3) | Municipal | ||
Assets | ||
Total fixed income securities | 19 | 18 |
Recurring basis | Significant unobservable inputs (Level 3) | Corporate - public | ||
Assets | ||
Total fixed income securities | 68 | 20 |
Recurring basis | Significant unobservable inputs (Level 3) | Corporate - privately placed | ||
Assets | ||
Total fixed income securities | 71 | 66 |
Recurring basis | Significant unobservable inputs (Level 3) | Foreign government | ||
Assets | ||
Total fixed income securities | 0 | 0 |
Recurring basis | Significant unobservable inputs (Level 3) | ABS | ||
Assets | ||
Total fixed income securities | 48 | 40 |
Non-recurring basis | ||
Assets | ||
Total assets at fair value | 23 | 32 |
Non-recurring basis | Quoted prices in active markets for identical assets (Level 1) | ||
Assets | ||
Total assets at fair value | 0 | 0 |
Non-recurring basis | Significant other observable inputs (Level 2) | ||
Assets | ||
Total assets at fair value | 0 | 0 |
Non-recurring basis | Significant unobservable inputs (Level 3) | ||
Assets | ||
Total assets at fair value | $ 23 | $ 32 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Quantitative information about the significant unobservable inputs used in level 3 fair value measurements (Details) - Equity-indexed and forward starting options in life and annuity product contracts - Projected option cost - Significant unobservable inputs (Level 3) $ in Millions | Sep. 30, 2021 USD ($) |
Quantitative information about the significant unobservable inputs | |
Fair value | $ (455) |
Minimum | |
Quantitative information about the significant unobservable inputs | |
Measurement input | 0.010 |
Maximum | |
Quantitative information about the significant unobservable inputs | |
Measurement input | 0.042 |
Weighted Average | |
Quantitative information about the significant unobservable inputs | |
Measurement input | 0.0290 |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities - Rollforward of level 3 assets and liabilities held at fair value on a recurring basis during the period (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Assets | ||||
Balance at beginning of period | $ 676 | $ 727 | $ 565 | $ 832 |
Total gains (losses) included in: net income | (19) | 33 | 73 | 68 |
Total gains (losses) included in: OCI | (1) | 0 | (6) | 0 |
Transfers into Level 3 | 2 | 1 | 2 | 13 |
Transfers out of Level 3 | (1) | (42) | (28) | (45) |
Transfers to (from) held for sale | 0 | 0 | ||
Purchases | 56 | 150 | 168 | 236 |
Sales | (66) | (95) | (101) | (265) |
Issues | 0 | 0 | 0 | 0 |
Settlements | (2) | (37) | (28) | (102) |
Balance at end of period | 645 | 737 | 645 | 737 |
Liabilities | ||||
Balance at the beginning of the period | 0 | (490) | 0 | (516) |
Total gains (losses) included in: net income | 0 | 15 | 0 | 46 |
Total gains (losses) included in: OCI | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Transfers to (from) held for sale | 0 | 0 | ||
Purchases | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 |
Issues | 0 | (9) | 0 | (25) |
Settlements | 0 | 5 | 0 | 16 |
Balance at the end of the period | 0 | (479) | 0 | (479) |
Net investment income | ||||
Total Level 3 gains (losses) included in net income | ||||
Gain (loss) included in earnings | 4 | 6 | 17 | (1) |
Net gains (losses) on investments and derivatives | ||||
Total Level 3 gains (losses) included in net income | ||||
Gain (loss) included in earnings | (23) | 26 | 56 | 66 |
Liabilities held for sale | ||||
Liabilities | ||||
Balance at the beginning of the period | (490) | (516) | ||
Total gains (losses) included in: net income | 0 | 15 | 0 | 46 |
Total gains (losses) included in: OCI | 0 | 0 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Transfers to (from) held for sale | 0 | 0 | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Issues | (9) | (25) | ||
Settlements | 5 | 16 | ||
Balance at the end of the period | (479) | (479) | ||
Municipal | ||||
Assets | ||||
Balance at beginning of period | 18 | 18 | 18 | 17 |
Total gains (losses) included in: net income | 0 | 0 | 0 | 0 |
Total gains (losses) included in: OCI | 0 | (1) | 1 | 0 |
Transfers into Level 3 | 2 | 0 | 2 | 0 |
Transfers out of Level 3 | (1) | 0 | 0 | 0 |
Transfers to (from) held for sale | 0 | 0 | ||
Purchases | 0 | 0 | 0 | 3 |
Sales | 0 | 0 | 0 | 0 |
Issues | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | (2) | (3) |
Balance at end of period | 19 | 17 | 19 | 17 |
Corporate - public | ||||
Assets | ||||
Balance at beginning of period | 77 | 20 | 20 | 67 |
Total gains (losses) included in: net income | 0 | 0 | 0 | 1 |
Total gains (losses) included in: OCI | (2) | 0 | (6) | (2) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Transfers to (from) held for sale | (1) | (7) | ||
Purchases | 0 | 0 | 66 | 13 |
Sales | (7) | 0 | (10) | (53) |
Issues | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | (2) | 0 |
Balance at end of period | 68 | 19 | 68 | 19 |
Corporate - privately placed | ||||
Assets | ||||
Balance at beginning of period | 73 | 84 | 66 | 63 |
Total gains (losses) included in: net income | 1 | 1 | 20 | 0 |
Total gains (losses) included in: OCI | 1 | 1 | (1) | 2 |
Transfers into Level 3 | 0 | 0 | 0 | 8 |
Transfers out of Level 3 | 0 | (22) | 0 | 0 |
Transfers to (from) held for sale | (2) | 14 | ||
Purchases | 18 | 104 | 32 | 103 |
Sales | (22) | (7) | (46) | (31) |
Issues | 0 | 0 | 0 | 0 |
Settlements | 0 | (5) | 0 | (5) |
Balance at end of period | 71 | 154 | 71 | 154 |
ABS | ||||
Assets | ||||
Balance at beginning of period | 18 | 33 | 40 | 79 |
Total gains (losses) included in: net income | 0 | 0 | 1 | 1 |
Total gains (losses) included in: OCI | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 1 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | (28) | (32) |
Transfers to (from) held for sale | 0 | 0 | ||
Purchases | 30 | 5 | 37 | 57 |
Sales | 0 | 0 | 0 | (42) |
Issues | 0 | 0 | 0 | 0 |
Settlements | 0 | (30) | (2) | (54) |
Balance at end of period | 48 | 9 | 48 | 9 |
Fixed income securities | ||||
Assets | ||||
Balance at beginning of period | 186 | 155 | 144 | 226 |
Total gains (losses) included in: net income | 1 | 1 | 21 | 2 |
Total gains (losses) included in: OCI | (1) | 0 | (6) | 0 |
Transfers into Level 3 | 2 | 1 | 2 | 8 |
Transfers out of Level 3 | (1) | (22) | (28) | (32) |
Transfers to (from) held for sale | (3) | 7 | ||
Purchases | 48 | 109 | 135 | 176 |
Sales | (29) | (7) | (56) | (126) |
Issues | 0 | 0 | 0 | 0 |
Settlements | 0 | (35) | (6) | (62) |
Balance at end of period | 206 | 199 | 206 | 199 |
Equity securities | ||||
Assets | ||||
Balance at beginning of period | 372 | 405 | 349 | 304 |
Total gains (losses) included in: net income | (16) | 31 | 13 | 63 |
Total gains (losses) included in: OCI | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Transfers to (from) held for sale | 0 | 101 | ||
Purchases | 8 | 27 | 10 | 40 |
Sales | (37) | (87) | (45) | (132) |
Issues | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Balance at end of period | 327 | 376 | 327 | 376 |
Short-term investments | ||||
Assets | ||||
Balance at beginning of period | 8 | 0 | 5 | 35 |
Total gains (losses) included in: net income | 0 | 0 | 0 | 0 |
Total gains (losses) included in: OCI | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Transfers to (from) held for sale | 0 | 0 | ||
Purchases | 0 | 14 | 23 | 14 |
Sales | 0 | 0 | 0 | 0 |
Issues | 0 | 0 | 0 | 0 |
Settlements | (2) | 0 | (22) | (35) |
Balance at end of period | 6 | 14 | 6 | 14 |
Other investments | ||||
Assets | ||||
Balance at beginning of period | 2 | 3 | 2 | 0 |
Total gains (losses) included in: net income | 0 | 0 | 0 | 0 |
Total gains (losses) included in: OCI | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Transfers to (from) held for sale | 0 | 0 | ||
Purchases | 0 | 0 | 0 | 3 |
Sales | 0 | (1) | 0 | (1) |
Issues | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Balance at end of period | 2 | 2 | 2 | 2 |
Other assets | ||||
Assets | ||||
Balance at beginning of period | 108 | 65 | ||
Total gains (losses) included in: net income | (4) | 39 | ||
Total gains (losses) included in: OCI | 0 | 0 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Issues | 0 | 0 | ||
Settlements | 0 | 0 | ||
Balance at end of period | $ 104 | $ 104 | ||
Assets held for sale | ||||
Assets | ||||
Balance at beginning of period | 164 | 267 | ||
Total gains (losses) included in: net income | 1 | 3 | ||
Total gains (losses) included in: OCI | 0 | 0 | ||
Transfers into Level 3 | 0 | 5 | ||
Transfers out of Level 3 | (20) | (13) | ||
Transfers to (from) held for sale | 3 | (108) | ||
Purchases | 0 | 3 | ||
Sales | 0 | (6) | ||
Issues | 0 | 0 | ||
Settlements | (2) | (5) | ||
Balance at end of period | $ 146 | $ 146 |
Fair Value of Assets and Liab_7
Fair Value of Assets and Liabilities - Change in unrealized gains and losses included in net income for level 3 assets and liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Gains (losses) included in net income for Level 3 assets and liabilities: | ||||
Total recurring Level 3 assets | $ (19) | $ 11 | $ 51 | $ 25 |
Total recurring Level 3 liabilities | 0 | 15 | 0 | 46 |
Total included in net income | (19) | 26 | 51 | 71 |
Total included in net income | (19) | 10 | 51 | 22 |
Changes in unrealized net capital gains and losses reported in OCI | (4) | 0 | (7) | 0 |
Net investment income | ||||
Gains (losses) included in net income for Level 3 assets and liabilities: | ||||
Total included in net income | 3 | 6 | 16 | (1) |
Net gains (losses) on investments and derivatives | ||||
Gains (losses) included in net income for Level 3 assets and liabilities: | ||||
Total included in net income | (22) | 4 | 35 | 23 |
Liabilities held for sale | ||||
Gains (losses) included in net income for Level 3 assets and liabilities: | ||||
Total recurring Level 3 liabilities | 0 | 15 | 0 | 46 |
Municipal | ||||
Gains (losses) included in net income for Level 3 assets and liabilities: | ||||
Total recurring Level 3 assets | 0 | 1 | 0 | 0 |
Changes in unrealized net capital gains and losses reported in OCI | 0 | (1) | 1 | 0 |
Corporate - privately placed | ||||
Gains (losses) included in net income for Level 3 assets and liabilities: | ||||
Total recurring Level 3 assets | 1 | 0 | 1 | 0 |
Changes in unrealized net capital gains and losses reported in OCI | (1) | 1 | (2) | 1 |
Fixed income securities | ||||
Gains (losses) included in net income for Level 3 assets and liabilities: | ||||
Total recurring Level 3 assets | 1 | 1 | 1 | 0 |
Equity securities | ||||
Gains (losses) included in net income for Level 3 assets and liabilities: | ||||
Total recurring Level 3 assets | (16) | 9 | 11 | 22 |
Other assets | ||||
Gains (losses) included in net income for Level 3 assets and liabilities: | ||||
Total recurring Level 3 assets | (4) | 0 | 39 | 0 |
Assets held for sale | ||||
Gains (losses) included in net income for Level 3 assets and liabilities: | ||||
Total recurring Level 3 assets | 0 | 1 | 0 | 3 |
Corporate - public | ||||
Gains (losses) included in net income for Level 3 assets and liabilities: | ||||
Changes in unrealized net capital gains and losses reported in OCI | $ (3) | $ 0 | $ (6) | $ (1) |
Fair Value of Assets and Liab_8
Fair Value of Assets and Liabilities - Carrying values and fair value estimates of financial instruments not carried at fair value (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Financial assets | ||||
Mortgage loans | $ 833 | $ 821 | ||
Financial liabilities | ||||
Long-term debt | 7,967 | 7,976 | ||
Liability for collateral | 2,201 | 1,444 | $ 1,481 | $ 914 |
Significant unobservable inputs (Level 3) | Amortized cost, net | ||||
Financial assets | ||||
Mortgage loans | 833 | 821 | ||
Bank loans | 748 | 1,574 | ||
Financial liabilities | ||||
Contractholder funds on investment contracts | 52 | 55 | ||
Significant unobservable inputs (Level 3) | Fair value | ||||
Financial assets | ||||
Mortgage loans | 779 | 853 | ||
Bank loans | 738 | 1,634 | ||
Financial liabilities | ||||
Contractholder funds on investment contracts | 52 | 55 | ||
Significant other observable inputs (Level 2) | Amortized cost, net | ||||
Financial liabilities | ||||
Long-term debt | 7,967 | 7,976 | ||
Liability for collateral | 2,201 | 1,444 | ||
Significant other observable inputs (Level 2) | Fair value | ||||
Financial liabilities | ||||
Long-term debt | 7,383 | 9,150 | ||
Liability for collateral | $ 2,201 | $ 1,444 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | |||
Potential recoveries | $ 0 | ||
Contingent consideration term | 10 years | ||
Other assets, net | $ 6,109,000,000 | $ 6,109,000,000 | $ 6,086,000,000 |
Term of credit default swaps (in years) | 5 years | ||
Contingent consideration | |||
Derivative [Line Items] | |||
Other assets, net | 104,000,000 | $ 104,000,000 | |
Gain on derivative | $ (4,000,000) | $ 39,000,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of the volume and fair value positions of derivative instruments (Details) $ in Millions | Sep. 30, 2022 USD ($) contract | Dec. 31, 2021 USD ($) contract |
Derivatives, Fair Value | ||
Total asset derivatives, notional amount | $ 1,118 | $ 1,285 |
Total liability derivatives, notional amount | 744 | 790 |
Total derivatives, notional amount | $ 1,862 | $ 2,075 |
Total asset derivatives, number of contracts | contract | 47,271 | 1,355 |
Total liability derivatives, number of contracts | contract | 7,853 | 37,928 |
Total derivatives, Number of contracts | contract | 55,124 | 39,283 |
Net amount on balance sheet | $ 161 | $ 76 |
Net amount on balance sheet | 23 | 9 |
Total derivatives, fair value, net | 184 | 85 |
Gross amount | 165 | 77 |
Liability derivatives, gross asset | 60 | 23 |
Asset derivatives, gross liability | (4) | (1) |
Liability derivatives gross amount | $ (37) | $ (14) |
Futures | Derivatives not designated as accounting hedging instruments | ||
Derivatives, Fair Value | ||
Total asset derivatives, number of contracts | contract | 45,626 | 1,181 |
Total liability derivatives, number of contracts | contract | 2,969 | 36,668 |
Net amount on balance sheet | $ 14 | $ 1 |
Net amount on balance sheet | (1) | (2) |
Gross amount | 14 | 1 |
Liability derivatives, gross asset | 0 | 0 |
Asset derivatives, gross liability | 0 | 0 |
Liability derivatives gross amount | $ (1) | $ (2) |
Options | Derivatives not designated as accounting hedging instruments | ||
Derivatives, Fair Value | ||
Total asset derivatives, number of contracts | contract | 1,309 | 61 |
Total liability derivatives, number of contracts | contract | 1,210 | |
Net amount on balance sheet | $ 44 | $ 5 |
Net amount on balance sheet | (16) | |
Gross amount | 44 | 5 |
Liability derivatives, gross asset | 0 | |
Asset derivatives, gross liability | 0 | $ 0 |
Liability derivatives gross amount | $ (16) | |
Futures | Derivatives not designated as accounting hedging instruments | ||
Derivatives, Fair Value | ||
Total asset derivatives, number of contracts | contract | 336 | 113 |
Total liability derivatives, number of contracts | contract | 3,674 | 1,260 |
Net amount on balance sheet | $ 0 | $ 0 |
Net amount on balance sheet | (8) | (1) |
Gross amount | 0 | 0 |
Liability derivatives, gross asset | 0 | 0 |
Asset derivatives, gross liability | 0 | 0 |
Liability derivatives gross amount | (8) | (1) |
Foreign currency forwards | Derivatives not designated as accounting hedging instruments | ||
Derivatives, Fair Value | ||
Total asset derivatives, notional amount | 39 | 2 |
Total liability derivatives, notional amount | 689 | 715 |
Net amount on balance sheet | (4) | 0 |
Net amount on balance sheet | 49 | 16 |
Gross amount | 0 | 0 |
Liability derivatives, gross asset | 60 | 23 |
Asset derivatives, gross liability | (4) | 0 |
Liability derivatives gross amount | (11) | (7) |
Embedded derivative financial instruments | Derivatives not designated as accounting hedging instruments | ||
Derivatives, Fair Value | ||
Total asset derivatives, notional amount | 750 | 750 |
Net amount on balance sheet | 0 | 0 |
Gross amount | 0 | 0 |
Asset derivatives, gross liability | 0 | 0 |
Contingent consideration | Derivatives not designated as accounting hedging instruments | ||
Derivatives, Fair Value | ||
Total asset derivatives, notional amount | 250 | 250 |
Net amount on balance sheet | 104 | 65 |
Gross amount | 104 | 65 |
Asset derivatives, gross liability | 0 | 0 |
Credit default swaps – buying protection | Derivatives not designated as accounting hedging instruments | ||
Derivatives, Fair Value | ||
Total asset derivatives, notional amount | 79 | 33 |
Total liability derivatives, notional amount | 55 | 70 |
Net amount on balance sheet | 3 | (1) |
Net amount on balance sheet | (1) | (4) |
Gross amount | 3 | 0 |
Liability derivatives, gross asset | 0 | 0 |
Asset derivatives, gross liability | 0 | (1) |
Liability derivatives gross amount | $ (1) | (4) |
Credit default swaps – selling protection | Derivatives not designated as accounting hedging instruments | ||
Derivatives, Fair Value | ||
Total asset derivatives, notional amount | 250 | |
Total liability derivatives, notional amount | 5 | |
Net amount on balance sheet | 6 | |
Net amount on balance sheet | 0 | |
Gross amount | 6 | |
Liability derivatives, gross asset | 0 | |
Asset derivatives, gross liability | 0 | |
Liability derivatives gross amount | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Gross and net amounts for OTC derivatives (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Asset derivatives | ||
Gross amount | $ 165 | $ 77 |
Offset-Counter-party netting | (4) | (1) |
Net amount on balance sheet | 161 | 76 |
Liability derivatives | ||
Gross amount | (37) | (14) |
Offsets-Counter-party netting | 60 | 23 |
Net amount on balance sheet | 23 | 9 |
OTC derivatives | ||
Asset derivatives | ||
Gross amount | 60 | 23 |
Offset-Counter-party netting | (64) | (24) |
Offsets-Cash collateral received | 5 | 2 |
Net amount on balance sheet | 1 | 1 |
Securities collateral (received) pledged | 0 | 0 |
Net amount | 1 | 1 |
Liability derivatives | ||
Gross amount | (16) | (10) |
Offsets-Counter-party netting | 64 | 24 |
Offsets-Cash collateral (received) pledged | (71) | (17) |
Net amount on balance sheet | (23) | (3) |
Securities collateral (received) pledged | 0 | 0 |
Net amount | $ (23) | $ (3) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Gains and losses from valuation and settlements reported on derivatives not designated as accounting hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments, Gain (Loss) | ||||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | $ 280 | $ 43 | $ 864 | $ 81 |
Net gains (losses) on investments and derivatives | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | 299 | 46 | 889 | 54 |
Operating costs and expenses | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | (19) | (3) | (25) | 27 |
Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | 260 | 18 | 734 | 19 |
Interest rate contracts | Net gains (losses) on investments and derivatives | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | 260 | 18 | 734 | 19 |
Interest rate contracts | Operating costs and expenses | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | 0 | 0 | 0 | 0 |
Equity and index contracts | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | 1 | 7 | 10 | 29 |
Equity and index contracts | Net gains (losses) on investments and derivatives | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | 9 | 10 | 65 | 2 |
Equity and index contracts | Operating costs and expenses | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | (8) | (3) | (55) | 27 |
Contingent consideration | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | (4) | 39 | ||
Contingent consideration | Net gains (losses) on investments and derivatives | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | 0 | 0 | ||
Contingent consideration | Operating costs and expenses | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | (4) | 39 | ||
Foreign currency contracts | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | 34 | 15 | 76 | 23 |
Foreign currency contracts | Net gains (losses) on investments and derivatives | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | 40 | 15 | 84 | 23 |
Foreign currency contracts | Operating costs and expenses | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | (6) | 0 | (8) | 0 |
Credit default contracts | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | (10) | 1 | 6 | 6 |
Credit default contracts | Net gains (losses) on investments and derivatives | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | (10) | 1 | 6 | 6 |
Credit default contracts | Operating costs and expenses | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | 0 | 0 | 0 | 0 |
Other contracts | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | (1) | (1) | ||
Other contracts | Net gains (losses) on investments and derivatives | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | 0 | 0 | ||
Other contracts | Operating costs and expenses | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | $ (1) | $ (1) | ||
Total return swaps - fixed income | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | 2 | 4 | ||
Total return swaps - fixed income | Net gains (losses) on investments and derivatives | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | 2 | 4 | ||
Total return swaps - fixed income | Operating costs and expenses | ||||
Derivative Instruments, Gain (Loss) | ||||
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives | $ 0 | $ 0 |
Derivative Financial Instrume_7
Derivative Financial Instruments - OTC cash and securities collateral pledged (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Pledged by the Company | $ 5,000,000 | |
Pledged to the Company | 71,000,000 | |
Collateral posted under MNAs for contracts containing credit-risk contingent features | $ 0 | $ 0 |
Derivative Financial Instrume_8
Derivative Financial Instruments - OTC derivatives counterparty credit exposure by counterparty credit rating (Details) $ in Millions | Sep. 30, 2022 USD ($) counter-party | Dec. 31, 2021 USD ($) counter-party |
Credit Derivatives | ||
Number of counter- parties | counter-party | 5 | 2 |
Notional amount | $ 732 | $ 566 |
Credit exposure | 49 | 16 |
Exposure, net of collateral | $ 0 | $ 0 |
A+ | ||
Credit Derivatives | ||
Number of counter- parties | counter-party | 4 | 1 |
Notional amount | $ 500 | $ 199 |
Credit exposure | 25 | 7 |
Exposure, net of collateral | $ 0 | $ 0 |
A | ||
Credit Derivatives | ||
Number of counter- parties | counter-party | 1 | 1 |
Notional amount | $ 232 | $ 367 |
Credit exposure | 24 | 9 |
Exposure, net of collateral | $ 0 | $ 0 |
Derivative Financial Instrume_9
Derivative Financial Instruments - Exchange traded and cleared margin deposits (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Pledged by the Company | $ 162 |
Received by the Company | $ 3 |
Derivative Financial Instrum_10
Derivative Financial Instruments - Fair value of instruments with credit-risk-contingent features (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross liability fair value of contracts containing credit-risk-contingent features | $ 11,000,000 | $ 8,000,000 |
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs | (11,000,000) | (7,000,000) |
Collateral posted under MNAs for contracts containing credit-risk-contingent features | 0 | 0 |
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently | $ 0 | $ 1,000,000 |
Derivative Financial Instrum_11
Derivative Financial Instruments - CDS notional amount by credit rating and fair value of protection sold (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Notional amount | $ 1,862 | $ 2,075 |
Credit default contracts | ||
Derivative [Line Items] | ||
Notional amount | 255 | |
Fair value | 6 | |
Single name | Corporate | Credit default contracts | ||
Derivative [Line Items] | ||
Notional amount | 5 | |
Fair value | 0 | |
Index | Corporate | Credit default contracts | ||
Derivative [Line Items] | ||
Notional amount | 250 | |
Fair value | 6 | |
AAA | Credit default contracts | ||
Derivative [Line Items] | ||
Notional amount | 2 | |
AAA | Single name | Corporate | Credit default contracts | ||
Derivative [Line Items] | ||
Notional amount | 0 | |
AAA | Index | Corporate | Credit default contracts | ||
Derivative [Line Items] | ||
Notional amount | 2 | |
AA | Credit default contracts | ||
Derivative [Line Items] | ||
Notional amount | 4 | |
AA | Single name | Corporate | Credit default contracts | ||
Derivative [Line Items] | ||
Notional amount | 0 | |
AA | Index | Corporate | Credit default contracts | ||
Derivative [Line Items] | ||
Notional amount | 4 | |
A | Credit default contracts | ||
Derivative [Line Items] | ||
Notional amount | 46 | |
A | Single name | Corporate | Credit default contracts | ||
Derivative [Line Items] | ||
Notional amount | 0 | |
A | Index | Corporate | Credit default contracts | ||
Derivative [Line Items] | ||
Notional amount | 46 | |
BBB | Credit default contracts | ||
Derivative [Line Items] | ||
Notional amount | 190 | |
BBB | Single name | Corporate | Credit default contracts | ||
Derivative [Line Items] | ||
Notional amount | 0 | |
BBB | Index | Corporate | Credit default contracts | ||
Derivative [Line Items] | ||
Notional amount | 190 | |
BB and lower | Credit default contracts | ||
Derivative [Line Items] | ||
Notional amount | 13 | |
BB and lower | Single name | Corporate | Credit default contracts | ||
Derivative [Line Items] | ||
Notional amount | 5 | |
BB and lower | Index | Corporate | Credit default contracts | ||
Derivative [Line Items] | ||
Notional amount | $ 8 |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) - Variable Interest Entity, Primary Beneficiary - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Variable Interest Entity [Line Items] | |||||
Notes payable | $ 123 | $ 123 | $ 123 | ||
Allstate Protection | |||||
Variable Interest Entity [Line Items] | |||||
Property and casualty insurance premiums | 39 | $ 47 | 122 | $ 137 | |
Incurred expense (adjustment) | $ 31 | $ 38 | $ 91 | $ 105 |
Variable Interest Entities - As
Variable Interest Entities - Assets and liabilities of consolidated VIEs (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Fixed income securities | $ 41,715 | $ 42,136 |
Short-term investments | 4,030 | 4,009 |
Deferred policy acquisition costs | 5,273 | 4,722 |
Premium installment and other receivables, net | 9,150 | 8,364 |
Reinsurance recoverables, net | 9,961 | 10,024 |
Other assets | 6,109 | 6,086 |
Total assets | 97,676 | 99,440 |
Liabilities | ||
Reserve for property and casualty insurance claims and claims expense | 36,529 | 33,060 |
Unearned premiums | 22,026 | 19,844 |
Total liabilities | 80,115 | 74,313 |
Variable Interest Entity, Primary Beneficiary | ||
Assets | ||
Fixed income securities | 302 | 324 |
Short-term investments | 12 | 30 |
Deferred policy acquisition costs | 20 | 15 |
Premium installment and other receivables, net | 41 | 42 |
Reinsurance recoverables, net | 119 | 114 |
Other assets | 89 | 82 |
Total assets | 583 | 607 |
Liabilities | ||
Reserve for property and casualty insurance claims and claims expense | 200 | 226 |
Unearned premiums | 174 | 175 |
Other liabilities and expenses | 327 | 265 |
Total liabilities | $ 701 | $ 666 |
Reserve for Property and Casu_3
Reserve for Property and Casualty Insurance Claims and Claims Expense - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Catastrophe | ||
Increase (decrease) in claims and claims expense | ||
Incurred expense (adjustment) | $ 2,330 | $ 2,810 |
Reserve for Property and Casu_4
Reserve for Property and Casualty Insurance Claims and Claims Expense - Rollforward of the reserve for property and casualty insurance claims and claims expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Incurred claims and claims expense related to: | ||||
Prior years | $ 866 | $ 161 | $ 1,470 | $ (65) |
National General | ||||
Activity in the reserve for property-liability insurance claims and claims expense: | ||||
National General acquisition as of January 4, 2021 | 0 | 1,797 | ||
Property-Liability | ||||
Activity in the reserve for property-liability insurance claims and claims expense: | ||||
Beginning balance | 33,060 | 27,610 | ||
Less recoverables | (9,479) | (7,033) | ||
Net balance as of January 1 | 23,581 | 20,577 | ||
Incurred claims and claims expense related to: | ||||
Current year | 25,792 | 21,579 | ||
Prior years | 1,470 | (65) | ||
Total incurred | 27,262 | 21,514 | ||
Claims and claims expense paid related to: | ||||
Current year | (14,020) | (12,539) | ||
Prior years | (9,850) | (8,098) | ||
Total paid | (23,870) | (20,637) | ||
Net balance as of September 30 | 26,973 | 23,251 | 26,973 | 23,251 |
Plus recoverables | 9,556 | 10,035 | 9,556 | 10,035 |
Ending balance | $ 36,529 | $ 33,286 | $ 36,529 | $ 33,286 |
Reserve for Property and Casu_5
Reserve for Property and Casualty Insurance Claims and Claims Expense - Prior year reserve reestimates included in claims and claims expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Increase (decrease) in claims and claims expense | ||||
Prior years | $ 866 | $ 161 | $ 1,470 | $ (65) |
Auto | ||||
Increase (decrease) in claims and claims expense | ||||
Prior years | 632 | 72 | 1,011 | 3 |
Homeowners | ||||
Increase (decrease) in claims and claims expense | ||||
Prior years | 55 | 17 | 177 | (156) |
Other personal lines | ||||
Increase (decrease) in claims and claims expense | ||||
Prior years | (5) | (66) | (14) | (83) |
Commercial lines | ||||
Increase (decrease) in claims and claims expense | ||||
Prior years | 64 | 25 | 175 | 58 |
Run-off Property-Liability | ||||
Increase (decrease) in claims and claims expense | ||||
Prior years | 120 | 113 | 124 | 115 |
Unfavorable reestimates | 118 | 111 | ||
Protection Services | ||||
Increase (decrease) in claims and claims expense | ||||
Prior years | 0 | 0 | (3) | (2) |
Non-catastrophe losses | ||||
Increase (decrease) in claims and claims expense | ||||
Prior years | 875 | 162 | 1,441 | 142 |
Non-catastrophe losses | Auto | ||||
Increase (decrease) in claims and claims expense | ||||
Prior years | 643 | 77 | 1,069 | 31 |
Non-catastrophe losses | Homeowners | ||||
Increase (decrease) in claims and claims expense | ||||
Prior years | 51 | 14 | 95 | 12 |
Non-catastrophe losses | Other personal lines | ||||
Increase (decrease) in claims and claims expense | ||||
Prior years | (2) | (66) | (18) | (69) |
Non-catastrophe losses | Commercial lines | ||||
Increase (decrease) in claims and claims expense | ||||
Prior years | 63 | 24 | 174 | 55 |
Non-catastrophe losses | Run-off Property-Liability | ||||
Increase (decrease) in claims and claims expense | ||||
Prior years | 120 | 113 | 124 | 115 |
Non-catastrophe losses | Protection Services | ||||
Increase (decrease) in claims and claims expense | ||||
Prior years | 0 | 0 | (3) | (2) |
Catastrophe | ||||
Increase (decrease) in claims and claims expense | ||||
Prior years | (9) | (1) | 29 | (207) |
Catastrophe | Nationwide Aggregate Reinsurance Program | ||||
Increase (decrease) in claims and claims expense | ||||
Prior years | 40 | 240 | ||
Catastrophe | Auto | ||||
Increase (decrease) in claims and claims expense | ||||
Prior years | (11) | (5) | (58) | (28) |
Catastrophe | Homeowners | ||||
Increase (decrease) in claims and claims expense | ||||
Prior years | 4 | 3 | 82 | (168) |
Catastrophe | Other personal lines | ||||
Increase (decrease) in claims and claims expense | ||||
Prior years | (3) | 0 | 4 | (14) |
Catastrophe | Commercial lines | ||||
Increase (decrease) in claims and claims expense | ||||
Prior years | 1 | 1 | 1 | 3 |
Catastrophe | Run-off Property-Liability | ||||
Increase (decrease) in claims and claims expense | ||||
Prior years | 0 | 0 | 0 | 0 |
Catastrophe | Protection Services | ||||
Increase (decrease) in claims and claims expense | ||||
Prior years | $ 0 | $ 0 | $ 0 | 0 |
Fire | Southern California Edison | ||||
Increase (decrease) in claims and claims expense | ||||
Prior years | $ 110 |
Reinsurance and Indemnificati_3
Reinsurance and Indemnification - Premiums earned and life premiums and contract charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property and casualty insurance premiums | ||||
Reinsurance | ||||
Property and casualty insurance premiums earned | $ (479) | $ (442) | $ (1,362) | $ (1,488) |
Accident and health insurance premiums and contract charges | ||||
Reinsurance | ||||
Accident and health insurance premiums and contract charges | $ (12) | $ (17) | $ (29) | $ (65) |
Reinsurance and Indemnificati_4
Reinsurance and Indemnification - Claims expense, life contract benefits and interest credited to contractholder funds (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property and casualty insurance claims and claims expense | ||||
Reductions to costs and expenses due to reinsurance ceded amounts | ||||
Ceded losses incurred | $ (925) | $ (1,458) | $ (1,300) | $ (3,209) |
Property and casualty insurance claims and claims expense | Michigan Catastrophic Claim Association | ||||
Reductions to costs and expenses due to reinsurance ceded amounts | ||||
Ceded losses incurred | 100 | 525 | ||
Property and casualty insurance claims and claims expense | Florida Excess Catastrophe Reinsurance Program | ||||
Reductions to costs and expenses due to reinsurance ceded amounts | ||||
Ceded losses incurred | 305 | 305 | ||
Accident, health and other policy benefits | ||||
Reductions to costs and expenses due to reinsurance ceded amounts | ||||
Ceded losses incurred | $ (5) | $ (13) | $ (21) | (68) |
Accident, health and other policy benefits | Nationwide Catastrophe Reinsurance Program | ||||
Reductions to costs and expenses due to reinsurance ceded amounts | ||||
Ceded losses incurred | 1,400 | |||
Accident, health and other policy benefits | National Flood Insurance Program | ||||
Reductions to costs and expenses due to reinsurance ceded amounts | ||||
Ceded losses incurred | $ 185 |
Reinsurance and Indemnificati_5
Reinsurance and Indemnification - Reinsurance and indemnification recoverables, net (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Reinsurance | ||
Reinsurance and indemnification recoverables, net | $ 9,961 | $ 10,024 |
Property-Liability | ||
Reinsurance | ||
Paid and due from reinsurers and indemnitors | 264 | 391 |
Unpaid losses estimated (including IBNR) | 9,556 | 9,479 |
Reinsurance and indemnification recoverables, net | 9,820 | 9,870 |
Accident and health insurance | ||
Reinsurance | ||
Reinsurance and indemnification recoverables, net | $ 141 | $ 154 |
Reinsurance and Indemnificati_6
Reinsurance and Indemnification - Rollforward of credit loss allowance for reinsurance recoverables (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property-Liability | ||||
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ (66) | $ (60) | $ (66) | $ (59) |
Increase in the provision for credit losses | (5) | (6) | (5) | (7) |
Write-offs | 9 | 0 | 9 | 0 |
Ending balance | (62) | (66) | (62) | (66) |
Accident and health insurance | ||||
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | (8) | (1) | (8) | (1) |
Increase in the provision for credit losses | 0 | 0 | 0 | 0 |
Write-offs | 0 | 0 | 0 | 0 |
Ending balance | $ (8) | $ (1) | $ (8) | $ (1) |
Company Restructuring - Narrati
Company Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | $ 14 | $ 23 | $ 27 | $ 145 |
Employee costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative amount incurred to date for active programs | 19 | 19 | ||
Exit costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cumulative amount incurred to date for active programs | $ 140 | $ 140 |
Company Restructuring - Restruc
Company Restructuring - Restructuring Programs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related charges | $ (14) | $ (23) | $ (27) | $ (145) | |
Future work environment | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected program charges | 110 | 110 | |||
Restructuring and related charges | (13) | $ (131) | |||
Change in estimated program costs | 44 | ||||
Remaining program charges | $ 10 | $ 10 |
Company Restructuring - Changes
Company Restructuring - Changes in the restructuring liability (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability as of December 31, 2021 | $ 21 |
Expense incurred | 35 |
Adjustments to liability | (8) |
Payments and non-cash charges | (23) |
Restructuring liability as of September 30, 2022 | 25 |
Employee costs | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability as of December 31, 2021 | 14 |
Expense incurred | 18 |
Adjustments to liability | (8) |
Payments and non-cash charges | (6) |
Restructuring liability as of September 30, 2022 | 18 |
Exit costs | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability as of December 31, 2021 | 7 |
Expense incurred | 17 |
Adjustments to liability | 0 |
Payments and non-cash charges | (17) |
Restructuring liability as of September 30, 2022 | $ 7 |
Guarantees and Contingent Lia_2
Guarantees and Contingent Liabilities (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) claim | |
Holland Hewitt v. Allstate Life Insurance Company | |
Guarantor Obligations [Line Items] | |
Number of putative class actions | claim | 2 |
Minimum | |
Guarantor Obligations [Line Items] | |
Loss contingencies, reasonably possible pretax loss exposure in excess of the amount accrued | $ 0 |
Maximum | |
Guarantor Obligations [Line Items] | |
Loss contingencies, reasonably possible pretax loss exposure in excess of the amount accrued | $ 178 |
Benefit Plans - Components of n
Benefit Plans - Components of net cost (benefit) for pension and other postretirement plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Costs and expenses | $ (10) | $ (54) | $ (97) | $ (164) |
Remeasurement (gains) losses | 79 | 40 | 91 | (404) |
Pension net cost (benefit) | 69 | (14) | (6) | (568) |
Pension benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 22 | 27 | 79 | 78 |
Interest cost | 59 | 47 | 157 | 145 |
Expected return on plan assets | (85) | (112) | (295) | (338) |
Amortization of prior service credit | (2) | (13) | (27) | (38) |
Costs and expenses | (6) | (51) | (86) | (153) |
Remeasurement of projected benefit obligation | (254) | (25) | (1,427) | (292) |
Remeasurement of plan assets | 335 | 68 | 1,563 | (99) |
Remeasurement (gains) losses | 81 | 43 | 136 | (391) |
Pension net cost (benefit) | 75 | (8) | 50 | (544) |
Postretirement benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 1 | 1 |
Interest cost | 3 | 2 | 7 | 6 |
Amortization of prior service credit | (7) | (5) | (19) | (18) |
Costs and expenses | (4) | (3) | (11) | (11) |
Remeasurement of projected benefit obligation | (2) | (3) | (45) | (13) |
Remeasurement of plan assets | 0 | 0 | 0 | 0 |
Remeasurement (gains) losses | (2) | (3) | (45) | (13) |
Pension net cost (benefit) | $ (6) | $ (6) | $ (56) | $ (24) |
Benefit Plans - Pension and pos
Benefit Plans - Pension and postretirement benefits remeasurement gains and losses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Retirement Benefits [Abstract] | ||||
Discount rate | $ (284) | $ (32) | $ (1,289) | $ (271) |
Other assumptions | 28 | 4 | (183) | (34) |
Remeasurement of plan assets (gains) losses | 335 | 68 | 1,563 | (99) |
Remeasurement (gains) losses | $ 79 | $ 40 | $ 91 | $ (404) |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Pension benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 5.72% | 4.92% | 3.97% | 2.93% |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Supplemental Cash Flow Information [Abstract] | ||
Transfer from investments | $ 111 | $ 31 |
Non-cash financing activities related to the issuance of shares for vested restricted stock units | 65 | 52 |
Operating lease, payments | 127 | 137 |
ROU asset obtained in exchange for operating lease liability | $ 17 | $ 96 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Activities resulting from management of proceeds (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Net change in proceeds managed | ||
Net change in fixed income securities | $ (473) | $ 0 |
Net change in short-term investments | (285) | (579) |
Operating cash flow (used) | (758) | (579) |
Net change in cash | 1 | 12 |
Net change in proceeds managed | (757) | (567) |
Change in Liabilities for Collateral [Roll Forward] | ||
Liabilities for collateral, beginning of period | (1,444) | (914) |
Liabilities for collateral, end of period | (2,201) | (1,481) |
Operating cash flow provided | $ 757 | $ 567 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pre-tax | ||||
Other comprehensive income (loss) | $ (1,123) | $ (472) | $ (4,697) | $ (1,760) |
Tax | ||||
Other comprehensive income (loss) | 238 | 100 | 999 | 374 |
After-tax | ||||
Other comprehensive loss, after-tax | (885) | (372) | (3,698) | (1,386) |
Unrealized net capital gains and losses | ||||
Pre-tax | ||||
Unrealized net holding gains and losses arising during the period, net of related offsets | (1,161) | (343) | (5,081) | (1,350) |
Less: reclassification adjustment of realized capital gains and losses | (159) | 84 | (602) | 367 |
Other comprehensive income (loss) | (1,002) | (427) | (4,479) | (1,717) |
Tax | ||||
Unrealized net holding gains and losses arising during the period, net of related offsets | 246 | 73 | 1,080 | 288 |
Less: reclassification adjustment of realized capital gains and losses | 33 | (18) | 126 | (77) |
Other comprehensive income (loss) | 213 | 91 | 954 | 365 |
After-tax | ||||
Unrealized net holding gains and losses arising during the period, net of related offsets | (915) | (270) | (4,001) | (1,062) |
Less: reclassification adjustment of realized capital gains and losses | (126) | 66 | (476) | 290 |
Other comprehensive loss, after-tax | (789) | (336) | (3,525) | (1,352) |
Unrealized foreign currency translation adjustments | ||||
Pre-tax | ||||
Other comprehensive income (loss) | (112) | (26) | (171) | 13 |
Tax | ||||
Other comprehensive income (loss) | 24 | 5 | 36 | (3) |
After-tax | ||||
Other comprehensive loss, after-tax | (88) | (21) | (135) | 10 |
Unamortized pension and other postretirement prior service credit | ||||
Pre-tax | ||||
Other comprehensive income (loss) | (9) | (19) | (47) | (56) |
Tax | ||||
Other comprehensive income (loss) | 1 | 4 | 9 | 12 |
After-tax | ||||
Other comprehensive loss, after-tax | $ (8) | $ (15) | $ (38) | $ (44) |