10-Q 1 allcorp-3311810xq.htm 10-Q Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
/X/  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2018
OR
[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to ______
Commission file number 1-11840
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THE ALLSTATE CORPORATION
(Exact name of registrant as specified in its charter)
 
Delaware
 
36-3871531
 
 
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)
 
 
 
2775 Sanders Road, Northbrook, Illinois
60062
 
 
(Address of principal executive offices)
(Zip Code)
 
 
(847) 402-5000
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
 
Yes   X  
No ___
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
 
Yes   X  
No ___
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
   X   
Accelerated filer
____
 
 
 
 
Non-accelerated filer
         (Do not check if a smaller reporting company)
Smaller reporting company
____
 
 
 
 
 
 
Emerging growth company
____
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ____
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
 
Yes        
No   X  
 
As of April 17, 2018, the registrant had 351,488,825 common shares, $.01 par value, outstanding.



The Allstate Corporation
Index to Quarterly Report on Form 10-Q
March 31, 2018
Part I Financial Information
Page
 
 
 
 
 
 
 
Condensed Consolidated Statements of Operations for the Three-Month Periods Ended March 31, 2018 and 2017 (unaudited)
 
Condensed Consolidated Statements of Comprehensive Income for the Three-Month Periods Ended March 31, 2018 and 2017 (unaudited)
 
Condensed Consolidated Statements of Financial Position as of March 31, 2018 (unaudited) and December 31, 2017
 
Condensed Consolidated Statements of Shareholders’ Equity for the Three-Month Periods Ended March 31, 2018 and 2017 (unaudited)
 
Condensed Consolidated Statements of Cash Flows for the Three-Month Periods Ended March 31, 2018 and 2017 (unaudited)
 
 
 
 
 
 
 
 
 
 
Highlights
 
 
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Allstate brand
Esurance brand
Encompass brand
Discontinued Lines and Coverages
Service Businesses
Allstate Life
Allstate Benefits
Allstate Annuities
 
 
 
 
 
 
 
 
 
 
Part II Other Information


Condensed Consolidated Financial Statements

Part I. Financial Information
Item 1. Financial Statements
The Allstate Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
($ in millions, except per share data)
 
Three months ended March 31,
 
2018
 
2017
 
 
(unaudited)
Revenues
 
 

 
 

Property and casualty insurance premiums
 
$
8,286

 
$
7,959

Life premiums and contract charges
 
616

 
593

Other revenue
 
216

 
210

Net investment income
 
786

 
748

Realized capital gains and losses:
 
 

 
 

Total other-than-temporary impairment (“OTTI”) losses
 

 
(62
)
OTTI losses reclassified (from) to other comprehensive income
 
(1
)
 
3

Net OTTI losses recognized in earnings
 
(1
)
 
(59
)
Sales and valuation changes on equity investments and derivatives
 
(133
)
 
193

Total realized capital gains and losses
 
(134
)
 
134

Total Revenues
 
9,770

 
9,644

 
 
 
 
 
Costs and expenses
 
 

 
 

Property and casualty insurance claims and claims expense
 
5,149

 
5,416

Life contract benefits
 
504

 
474

Interest credited to contractholder funds
 
161

 
173

Amortization of deferred policy acquisition costs
 
1,273

 
1,169

Operating costs and expenses
 
1,355

 
1,307

Restructuring and related charges
 
22

 
10

Interest expense
 
83

 
85

Total costs and expenses
 
8,547

 
8,634

 
 
 
 
 
Gain on disposition of operations
 
1

 
2

 
 
 
 
 
Income from operations before income tax expense
 
1,224

 
1,012

 
 
 
 
 
Income tax expense
 
249

 
317

 
 
 
 
 
Net income
 
975

 
695

 
 
 
 
 
Preferred stock dividends
 
29

 
29

 
 
 
 
 
Net income applicable to common shareholders
 
$
946

 
$
666

 
 
 
 
 
Earnings per common share:
 
 

 
 

Net income applicable to common shareholders per common share - Basic
 
$
2.67

 
$
1.82

Weighted average common shares - Basic
 
354.1

 
365.7

Net income applicable to common shareholders per common share - Diluted
 
$
2.63

 
$
1.79

Weighted average common shares - Diluted
 
359.9

 
371.3

Cash dividends declared per common share
 
$
0.46

 
$
0.37









See notes to condensed consolidated financial statements.

First Quarter 2018 Form 10-Q 1

Condensed Consolidated Financial Statements

The Allstate Corporation and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income
($ in millions)
 
Three months ended March 31,
 
2018
 
2017
 
 
 (unaudited)
Net income
 
$
975

 
$
695

 
 
 
 
 
Other comprehensive (loss) income, after-tax
 
 

 
 

Changes in:
 
 

 
 

Unrealized net capital gains and losses
 
(565
)
 
203

Unrealized foreign currency translation adjustments
 
(4
)
 
(3
)
Unrecognized pension and other postretirement benefit cost
 
23

 
19

Other comprehensive (loss) income, after-tax
 
(546
)
 
219

 
 
 
 
 
Comprehensive income
 
$
429

 
$
914

 
































See notes to condensed consolidated financial statements.

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Condensed Consolidated Financial Statements

The Allstate Corporation and Subsidiaries
Condensed Consolidated Statements of Financial Position
($ in millions, except par value data)
 
March 31, 2018
 
December 31, 2017
Assets
 
(unaudited)
 
 

Investments
 
 

 
 

Fixed income securities, at fair value (amortized cost $56,209 and $57,525)
 
$
56,674

 
$
58,992

Equity securities, at fair value (cost $5,928 and $5,461)
 
6,986

 
6,621

Mortgage loans
 
4,679

 
4,534

Limited partnership interests
 
7,434

 
6,740

Short-term, at fair value (amortized cost $3,424 and $1,944)
 
3,424

 
1,944

Other
 
4,092

 
3,972

Total investments
 
83,289

 
82,803

Cash
 
450

 
617

Premium installment receivables, net
 
5,856

 
5,786

Deferred policy acquisition costs
 
4,409

 
4,191

Reinsurance recoverables, net
 
8,916

 
8,921

Accrued investment income
 
576

 
569

Property and equipment, net
 
1,060

 
1,072

Goodwill
 
2,189

 
2,181

Other assets
 
3,230

 
2,838

Separate Accounts
 
3,314

 
3,444

Total assets
 
$
113,289

 
$
112,422

Liabilities
 
 

 
 

Reserve for property and casualty insurance claims and claims expense
 
$
26,115

 
$
26,325

Reserve for life-contingent contract benefits
 
12,333

 
12,549

Contractholder funds
 
19,139

 
19,434

Unearned premiums
 
13,448

 
13,473

Claim payments outstanding
 
865

 
875

Deferred income taxes
 
725

 
782

Other liabilities and accrued expenses
 
7,226

 
6,639

Long-term debt
 
6,847

 
6,350

Separate Accounts
 
3,314

 
3,444

Total liabilities
 
90,012

 
89,871

Commitments and Contingent Liabilities (Note 12)
 


 


Shareholders’ equity
 
 

 
 

Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized, 95.2 thousand and 72.2 thousand shares issued and outstanding, $2,380 and $1,805 aggregate liquidation preference
 
2,303

 
1,746

Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 352 million and 355 million shares outstanding
 
9

 
9

Additional capital paid-in
 
3,367

 
3,313

Retained income
 
45,031

 
43,162

Deferred ESOP expense
 
(3
)
 
(3
)
Treasury stock, at cost (548 million and 545 million shares)
 
(26,280
)
 
(25,982
)
Accumulated other comprehensive income:
 
 

 
 

Unrealized net capital gains and losses:
 
 

 
 

Unrealized net capital gains and losses on fixed income securities with OTTI
 
84

 
85

Other unrealized net capital gains and losses
 
283

 
1,981

Unrealized adjustment to DAC, DSI and insurance reserves
 
(180
)
 
(404
)
Total unrealized net capital gains and losses
 
187

 
1,662

Unrealized foreign currency translation adjustments
 
(13
)
 
(9
)
Unrecognized pension and other postretirement benefit cost
 
(1,324
)
 
(1,347
)
Total accumulated other comprehensive income (“AOCI”)
 
(1,150
)
 
306

Total shareholders’ equity
 
23,277

 
22,551

Total liabilities and shareholders’ equity
 
$
113,289

 
$
112,422


See notes to condensed consolidated financial statements.

First Quarter 2018 Form 10-Q 3

Condensed Consolidated Financial Statements

The Allstate Corporate and Subsidiaries
Condensed Consolidated Statements of Shareholders’ Equity
($ in millions)
 
Three months ended March 31,
 
2018
 
2017
 
 
(unaudited)
Preferred stock par value
 
$

 
$

 
 
 
 
 
Preferred stock additional capital paid-in
 
 

 
 

Balance, beginning of period
 
1,746

 
1,746

Preferred stock issuance
 
557

 

Preferred stock additional capital paid-in
 
2,303

 
1,746

 
 
 
 
 
Common stock
 
9

 
9

 
 
 
 
 
Additional capital paid-in
 
 

 
 

Balance, beginning of period
 
3,313

 
3,303

Forward contract on accelerated share repurchase agreement
 
45

 

Equity incentive plans activity
 
9

 
(18
)
Balance, end of period
 
3,367

 
3,285

 
 
 
 
 
Retained income
 
 

 
 

Balance, beginning of period
 
43,162

 
40,678

Cumulative effect of change in accounting principle
 
1,088

 

Net income
 
975

 
695

Dividends on common stock
 
(165
)
 
(136
)
Dividends on preferred stock
 
(29
)
 
(29
)
Balance, end of period
 
45,031

 
41,208

 
 
 
 
 
Deferred ESOP expense
 
(3
)
 
(6
)
 
 
 
 
 
Treasury stock
 
 

 
 

Balance, beginning of period
 
(25,982
)
 
(24,741
)
Shares acquired
 
(333
)
 
(249
)
Shares reissued under equity incentive plans, net
 
35

 
103

Balance, end of period
 
(26,280
)
 
(24,887
)
 
 
 
 
 
Accumulated other comprehensive income
 
 

 
 

Balance, beginning of period
 
306

 
(416
)
Cumulative effect of change in accounting principle
 
(910
)
 

Change in unrealized net capital gains and losses
 
(565
)
 
203

Change in unrealized foreign currency translation adjustments
 
(4
)
 
(3
)
Change in unrecognized pension and other postretirement benefit cost
 
23

 
19

Balance, end of period
 
(1,150
)
 
(197
)
Total shareholders’ equity
 
$
23,277

 
$
21,158

 








See notes to condensed consolidated financial statements.

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Condensed Consolidated Financial Statements

The Allstate Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows
($ in millions)
 
Three months ended March 31,
 
2018
 
2017
Cash flows from operating activities
 
(unaudited)
Net income
 
$
975

 
$
695

Adjustments to reconcile net income to net cash provided by operating activities:
 
 

 
 

Depreciation, amortization and other non-cash items
 
122

 
119

Realized capital gains and losses
 
134

 
(134
)
Gain on disposition of operations
 
(1
)
 
(2
)
Interest credited to contractholder funds
 
161

 
173

Changes in:
 
 

 
 

Policy benefits and other insurance reserves
 
(364
)
 
183

Unearned premiums
 
(204
)
 
(248
)
Deferred policy acquisition costs
 
10

 
14

Premium installment receivables, net
 
(58
)
 
(19
)
Reinsurance recoverables, net
 
(12
)
 
11

Income taxes
 
181

 
284

Other operating assets and liabilities
 
(318
)
 
(219
)
Net cash provided by operating activities
 
626

 
857

Cash flows from investing activities
 
 

 
 

Proceeds from sales
 
 

 
 

Fixed income securities
 
10,619

 
7,083

Equity securities
 
1,138

 
2,601

Limited partnership interests
 
53

 
210

Other investments
 
76

 
24

Investment collections
 
 

 
 

Fixed income securities
 
583

 
1,029

Mortgage loans
 
46

 
223

Other investments
 
122

 
174

Investment purchases
 
 

 
 

Fixed income securities
 
(9,789
)
 
(8,800
)
Equity securities
 
(1,535
)
 
(2,383
)
Limited partnership interests
 
(415
)
 
(268
)
Mortgage loans
 
(192
)
 
(86
)
Other investments
 
(330
)
 
(219
)
Change in short-term investments, net
 
(1,533
)
 
1,572

Change in other investments, net
 
(27
)
 
(10
)
Purchases of property and equipment, net
 
(62
)
 
(74
)
Acquisition of operations
 
(5
)
 
(1,356
)
Net cash used in investing activities
 
(1,251
)
 
(280
)
Cash flows from financing activities
 
 

 
 

Proceeds from issuance of long-term debt
 
498

 

Proceeds from issuance of preferred stock
 
558

 

Contractholder fund deposits
 
253

 
257

Contractholder fund withdrawals
 
(492
)
 
(483
)
Dividends paid on common stock
 
(132
)
 
(122
)
Dividends paid on preferred stock
 
(29
)
 
(29
)
Treasury stock purchases
 
(270
)
 
(264
)
Shares reissued under equity incentive plans, net
 
10

 
67

Other
 
62

 
3

Net cash provided by (used in) financing activities
 
458

 
(571
)
Net (decrease) increase in cash
 
(167
)
 
6

Cash at beginning of period
 
617

 
436

Cash at end of period
 
$
450

 
$
442

See notes to condensed consolidated financial statements.

First Quarter 2018 Form 10-Q 5

Notes to Condensed Consolidated Financial Statements


The Allstate Corporation and Subsidiaries
Notes to Condensed Consolidated Financial Statements
(Unaudited)
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 life and investment subsidiaries, including Allstate Life Insurance Company (“ALIC”) (collectively referred to as the “Company” or “Allstate”). 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 March 31, 2018 and for the three month periods ended March 31, 2018 and 2017 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, 2017. 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.
Adopted accounting standards
Recognition and Measurement of Financial Assets and Financial Liabilities
Effective January 1, 2018, the Company adopted new Financial Accounting Standards Board (“FASB”) guidance requiring equity investments, including equity securities and limited partnership interests not accounted for under the equity method of accounting or that do not result in consolidation to be measured at fair value with changes in fair value recognized in net income. The guidance clarifies that an entity should evaluate the realizability of deferred tax assets related to available-for-sale fixed income securities in combination with the entity’s other deferred tax assets. The Company’s adoption of the new FASB guidance included adoption of the relevant elements of Technical Corrections and Improvements to Financial Instruments, issued in February 2018.
Upon adoption of the new guidance on January 1, 2018, $1.16 billion of pre-tax unrealized net capital gains for equity securities were reclassified from AOCI to retained income. The after-tax change in accounting for equity securities did not affect the Company’s total shareholders’ equity and the unrealized net capital
 
gains reclassified to retained income will never be recognized in net income.
Upon adoption of the new guidance on January 1, 2018, the carrying value of cost method limited partnership interests increased $224 million, pre-tax to fair value. The after-tax cumulative-effect increase in retained income of $177 million increased the Company’s shareholders’ equity but will never be recognized in net income thereby negatively impacting calculations of returns on equity.
Revenue from Contracts with Customers
Effective January 1, 2018, the Company adopted new FASB guidance which revises the criteria for revenue recognition. Insurance contracts are excluded from the scope of the new guidance. The Company’s principal activities impacted by the new guidance are those related to the issuance of protection plans for consumer products and automobiles and service contracts that provide roadside assistance. Under the guidance, the transaction price is attributed to underlying performance obligations in the contract and revenue is recognized as the entity satisfies performance obligations and transfers control of a good or service to the customer. Incremental costs of obtaining a contract may be capitalized to the extent the entity expects to recover those costs.
Adoption of the guidance on January 1, 2018 under the modified retrospective approach resulted in the recognition of an immaterial after-tax net cumulative effect increase to the beginning balance of retained income. In addition to the net cumulative effect, the Company also recorded in the statement of financial position an increase of approximately $160 million pre-tax in unearned premiums with a corresponding $160 million pre-tax increase in DAC for protection plans sold directly to retailers for which SquareTrade is deemed to be the principal in the transaction. These impacts offset fully and did not impact retained income at the date of adoption.
Presentation of Net Periodic Pension and Postretirement Benefits Costs
Effective January 1, 2018, the Company adopted new FASB guidance requiring identification, on the statement of operations or in disclosures, the line items in which the components of net periodic pension and postretirement benefits costs are presented. The new guidance permits only the service cost component to be eligible for capitalization where applicable. The adoption had no impact on the Company’s results of operations or financial position.
Goodwill Impairment
In January 2017, the FASB issued guidance to simplify the accounting for goodwill impairment which removes the second step of the goodwill impairment

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Notes to Condensed Consolidated Financial Statements


test that requires a hypothetical purchase price allocation. Under the new guidance, goodwill impairment will be measured and recognized as the amount by which a reporting unit’s carrying value, including goodwill, exceeds its fair value, not to exceed the carrying amount of goodwill allocated to the reporting unit. The revised guidance does not affect a reporting entity’s ability to first assess qualitative factors by reporting unit to determine whether to perform the quantitative goodwill impairment test. The guidance is to be applied on a prospective basis, with the effects, if any, recognized in net income in the period of adoption. The Company elected to early adopt the new guidance as of January 1, 2018. The adoption had no impact on the Company’s results of operations or financial position.
Changes to significant accounting policies
Investments
Changes were made to the Company’s Significant Accounting Policies upon adoption of new FASB guidance related to the recognition and measurement of financial assets. Equity securities primarily include common stocks, exchange traded and mutual funds, non-redeemable preferred stocks and real estate investment trust equity investments. Equity securities are carried at fair value. Equity securities without readily determinable or estimable fair values are measured using the measurement alternative which is cost less impairment, if any, and adjustments resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. The periodic change in fair value of equity securities is recognized within realized capital gains and losses on the Condensed Consolidated Statements of Operations effective January 1, 2018.
Investments in limited partnership interests include interests in private equity funds, real estate funds and other funds. Where the Company’s interest is so minor that it exercises virtually no influence over operating and financial policies, investments in limited partnership interests purchased prior to January 1, 2018 are accounted for at fair value primarily utilizing the net asset value as a practical expedient (“NAV”) to determine fair value. All other investments in limited partnership interests, including those purchased subsequent to January 1, 2018, are accounted for in accordance with the equity method of accounting (“EMA”).
Investment income from limited partnership interests carried at fair value is recognized based upon the changes in fair value of the investee’s equity primarily determined using NAV. Income from EMA limited partnership interests is recognized based on the Company’s share of the partnerships’ earnings. Income from EMA limited partnership interests is generally recognized on a three month delay due to the availability of the related financial statements.
Recognition of Revenue
Revenues related to protection plans, other contracts (primarily finance and insurance products) and roadside assistance are deferred and earned over
 
the term of the contract in a manner that recognizes revenue as obligations under the contracts are performed. Revenues from these products are classified as premiums as the products are backed by insurance. Protection plans and finance and insurance premiums are recognized using a cost-based incurrence method. Roadside assistance premiums are recognized evenly over the term of the contract as performance obligations are fulfilled.
Tax Reform
On December 22, 2017, Public Law 115-97, known as the Tax Cuts and Jobs Act of 2017 (“Tax Legislation”) became effective, permanently reducing the U.S. corporate income tax rate from 35% to 21% beginning January 1, 2018. As a result, the corporate tax rate is not comparable between periods.
Pending accounting standards
Accounting for Leases
In February 2016, the FASB issued guidance revising the accounting for leases. Under the new guidance, lessees will be required to recognize a right-of-use asset and lease liability for all leases other than those that meet the definition of a short-term lease. The lease liability will be equal to the present value of lease payments. A right-of-use asset will be based on the lease liability adjusted for qualifying initial direct costs. Recognition of the lease liability and right-of-use asset will result in an increase in total assets and liabilities in the Condensed Consolidated Statement of Financial Position. The expense of operating leases under the new guidance will be recognized in the income statement on a straight-line basis by adjusting the amortization of the right-of-use asset to produce a straight-line expense when combined with the interest expense on the lease liability. For finance leases, the expense components are computed separately and produce greater up-front expense compared to operating leases as interest expense on the lease liability is higher in early years and the right-of-use asset is amortized on a straight-line basis. Lease classification will be based on criteria similar to those currently applied. The accounting model for lessors will be similar to the current model with modifications to reflect definition changes for components such as initial direct costs. Lessors will continue to classify leases as operating, direct financing, or sales-type. The guidance is effective for reporting periods beginning after December 15, 2018, using a modified retrospective approach applied at the beginning of the earliest period presented. The FASB has exposed for comment an optional simplified transition approach that would allow application of the transition provisions at the effective date instead of the earliest date presented. The Company is in the process of evaluating the impact of adoption, which is not expected to be material to the Company’s results of operations or financial position.
Measurement of Credit Losses on Financial Instruments
In June 2016, the FASB issued guidance which revises the credit loss recognition criteria for certain

First Quarter 2018 Form 10-Q 7

Notes to Condensed Consolidated Financial Statements


financial assets measured at amortized cost, including reinsurance recoverables. The new guidance replaces the existing incurred loss recognition model with an expected loss recognition model. The objective of the expected credit loss model is for the reporting entity to recognize its estimate of expected credit losses for affected financial assets in a valuation allowance deducted from the amortized cost basis of the related financial assets that results in presenting the net carrying value of the financial assets at the amount expected to be collected. The reporting entity must consider all relevant information available when estimating expected credit losses, including details about past events, current conditions, and reasonable and supportable forecasts over the life of an asset. Financial assets may be evaluated individually or on a pooled basis when they share similar risk characteristics. The measurement of credit losses for available-for-sale debt securities measured at fair value is not affected except that credit losses recognized are limited to the amount by which fair value is below amortized cost and the carrying value adjustment is recognized through a valuation allowance and not as a direct write-down. The guidance is effective for reporting periods beginning after December 15, 2019, and for most affected instruments must be adopted using a modified retrospective approach, with a cumulative effect adjustment recorded to beginning retained income. The Company is in the process of evaluating the impact of adoption.
Accounting for Hedging Activities
In August 2017, the FASB issued amendments intended to better align hedge accounting with an organization’s risk management activities. The
 
amendments expand hedge accounting for nonfinancial and financial risk components and revise the measurement methodologies to better align with an organization’s risk management activities. Separate presentation of hedge ineffectiveness is eliminated to provide greater transparency of the full impact of hedging by requiring presentation of the results of the hedged item and hedging instrument in a single financial statement line item. In addition, the amendments reduce complexity by simplifying the manner in which assessments of hedge effectiveness may be performed. The guidance is effective for reporting periods beginning after December 15, 2018. The presentation and disclosure guidance is effective on a prospective basis. The impact of adoption is not expected to be material to the Company’s results of operations or financial position.
Other revenue presentation
Concurrent with the adoption of new FASB guidance on revenue from contracts with customers and the Company’s objective of providing more information related to revenues for our Services Businesses, the Company revised the presentation of total revenue to include other revenue. Previously, components of other revenue were presented within operating costs and expenses and primarily represent fees collected from policyholders relating to premium installment payments, commissions on sales of non-proprietary products, fee-based services and other revenue transactions. Other revenue is recognized when performance obligations are fulfilled. Prior periods have been reclassified to conform to current separate presentation of other revenue.
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 and unvested non-participating restricted stock units and contingently issuable performance stock awards.
Computation of basic and diluted earnings per common share
($ in millions, except per share data)
 
Three months ended March 31,
 
2018
 
2017
Numerator:
 
 
 
 
Net income
 
$
975

 
$
695

Less: Preferred stock dividends
 
29

 
29

Net income applicable to common shareholders (1)
 
$
946

 
$
666

 
 
 
 
 
Denominator:
 
 
 
 
Weighted average common shares outstanding
 
354.1

 
365.7

Effect of dilutive potential common shares:
 
 
 
 
Stock options
 
4.1

 
4.2

Restricted stock units (non-participating) and performance stock awards
 
1.7

 
1.4

Weighted average common and dilutive potential common shares outstanding
 
359.9

 
371.3

 
 
 
 
 
Earnings per common share - Basic
 
$
2.67

 
$
1.82

Earnings per common share - Diluted
 
$
2.63

 
$
1.79

(1) 
Net income applicable to common shareholders is net income less preferred stock dividends.

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Notes to Condensed Consolidated Financial Statements


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.
 
Options to purchase 1.0 million and 2.8 million Allstate common shares, with exercise prices ranging from $86.61 to $102.84 and $67.81 to $81.86, were outstanding for the three-month periods ended March 31, 2018 and 2017, respectively, but were not included in the computation of diluted earnings per common share in those periods.
Note 3
Acquisition
On January 3, 2017, the Company acquired SquareTrade Holding Company, Inc. (“SquareTrade”), a consumer product protection plan provider that distributes through many of America’s major retailers and Europe’s mobile operators, for $1.4 billion in cash. SquareTrade is a provider of consumer electronics and appliance protection plans covering products including TVs, smartphones and computers. This acquisition broadens Allstate’s unique product offerings to better meet consumers’ needs.
In connection with the acquisition, the Company recorded goodwill of $1.10 billion, commissions paid to retailers (reported in deferred policy acquisition costs) of $66 million, other intangible assets (reported in other assets) of $555 million, contractual liability
 
insurance policy premium expenses (reported in other assets) of $205 million, unearned premiums of $389 million and net deferred income tax liability of $138 million. These amounts reflect re-measurement adjustments to the fair value of the opening balance sheet assets and liabilities.
Of the $555 million assigned to other intangible assets, $465 million is attributable to acquired customer relationships. The $555 million assigned to other intangible assets also included $69 million assigned to the SquareTrade trade name which is considered to have an indefinite useful life. The amortization expense of intangible assets for the three months ended March 31, 2018 and 2017 was $21 million and $23 million, respectively.

First Quarter 2018 Form 10-Q 9

Notes to Condensed Consolidated Financial Statements


Note 4
Reportable Segments
Reportable segments revenue information
($ in millions)
 
Three months ended March 31,
 
2018
 
2017
Property-Liability
 
 

 
 

Insurance premiums
 
 

 
 

Auto
 
$
5,591

 
$
5,388

Homeowners
 
1,848

 
1,815

Other personal lines
 
444

 
431

Commercial lines
 
136

 
125

Allstate Protection
 
8,019

 
7,759

Discontinued Lines and Coverages
 

 

Total property-liability insurance premiums
 
8,019

 
7,759

Other revenue
 
174

 
167

Net investment income
 
337

 
308

Realized capital gains and losses
 
(95
)
 
135

Total Property-Liability
 
8,435

 
8,369

 
 
 
 
 
Service Businesses
 
 
 
 
Consumer product protection plans
 
123

 
59

Roadside assistance
 
64

 
68

Finance and insurance products
 
80

 
73

Intersegment premiums and service fees (1)
 
29

 
28

Other revenue
 
16

 
16

Net investment income
 
5

 
3

Realized capital gains and losses
 
(4
)
 

Total Service Businesses
 
313

 
247

 
 
 
 
 
Allstate Life
 
 
 
 
Traditional life insurance premiums
 
146

 
140

Interest-sensitive life insurance contract charges
 
181

 
181

Other revenue
 
26

 
27

Net investment income
 
122

 
120

Realized capital gains and losses
 
(3
)
 
1

Total Allstate Life
 
472

 
469

 
 
 
 
 
Allstate Benefits
 
 
 
 
Traditional life insurance premiums
 
9

 
9

Accident and health insurance premiums
 
248

 
232

Interest-sensitive life insurance contract charges
 
29

 
28

Net investment income
 
19

 
17

Realized capital gains and losses
 
(2
)
 

Total Allstate Benefits
 
303

 
286

 
 
 
 
 
Allstate Annuities
 
 
 
 
Fixed annuities contract charges
 
3

 
3

Net investment income
 
290

 
289

Realized capital gains and losses
 
(29
)
 
(2
)
Total Allstate Annuities
 
264

 
290

 
 
 
 
 
Corporate and Other
 
 

 
 

Net investment income
 
13

 
11

Realized capital gains and losses
 
(1
)
 

 
 
 
 
 
Total Corporate and Other
 
12

 
11

Intersegment eliminations (1)
 
(29
)
 
(28
)
Consolidated revenues
 
$
9,770

 
$
9,644

(1) Intersegment insurance premiums and service fees are primarily related to Arity and Allstate Roadside Services and are eliminated in the condensed consolidated financial statements.

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Notes to Condensed Consolidated Financial Statements


Reportable segments financial performance
 
 
Three months ended March 31,
($ in millions)
 
2018
 
2017
Property-Liability
 
 
 
 
Allstate Protection
 
$
962

 
$
550

Discontinued Lines and Coverages
 
(3
)
 
(2
)
Total underwriting income
 
959

 
548

Net investment income
 
337

 
308

Income tax expense on operations
 
(268
)
 
(268
)
Realized capital gains and losses, after-tax
 
(75
)
 
89

Property-Liability net income applicable to common shareholders
 
953

 
677

 
 
 
 
 
Service Businesses
 
 
 
 
Adjusted net loss
 
(5
)
 
(10
)
Realized capital gains and losses, after-tax
 
(3
)
 

Amortization of purchased intangible assets, after-tax
 
(16
)
 
(15
)
Service Businesses net loss applicable to common shareholders
 
(24
)
 
(25
)
 
 
 
 
 
Allstate Life
 
 
 
 
Adjusted net income
 
69

 
59

Realized capital gains and losses, after-tax
 
(2
)
 
1

DAC and DSI amortization related to realized capital gains and losses, after-tax
 
(2
)
 
(3
)
Allstate Life net income applicable to common shareholders
 
65

 
57

 
 
 
 
 
Allstate Benefits
 
 
 
 
Adjusted net income
 
28

 
22

Realized capital gains and losses, after-tax
 
(2
)
 

Allstate Benefits net income applicable to common shareholders
 
26

 
22

 
 
 
 
 
Allstate Annuities
 
 
 
 
Adjusted net income
 
35

 
29

Realized capital gains and losses, after-tax
 
(23
)
 
(2
)
Valuation changes on embedded derivatives not hedged, after-tax
 
4

 

Gain on disposition of operations, after-tax
 
1

 
2

Allstate Annuities net income applicable to common shareholders
 
17

 
29

 
 
 
 
 
Corporate and Other
 
 
 
 
Adjusted net loss
 
(90
)
 
(81
)
Realized capital gains and losses, after-tax
 
(1
)
 

Business combination expenses, after-tax
 

 
(13
)
Corporate and Other net loss applicable to common shareholders
 
(91
)
 
(94
)
 
 
 
 
 
Consolidated net income applicable to common shareholders
 
$
946

 
$
666


First Quarter 2018 Form 10-Q 11

Notes to Condensed Consolidated Financial Statements


Note 5
Investments
Amortized cost, gross unrealized gains and losses and fair value for fixed income securities
($ in millions)
 
Amortized cost
 
Gross unrealized
 
Fair
value
 
 
Gains
 
Losses
 
March 31, 2018
 
 

 
 

 
 

 
 

U.S. government and agencies
 
$
3,373

 
$
50

 
$
(17
)
 
$
3,406

Municipal
 
8,404

 
257

 
(92
)
 
8,569

Corporate
 
41,699

 
763

 
(611
)
 
41,851

Foreign government
 
968

 
21

 
(10
)
 
979

Asset-backed securities (“ABS”)
 
1,196

 
11

 
(10
)
 
1,197

Residential mortgage-backed securities (“RMBS”)
 
453

 
100

 
(3
)
 
550

Commercial mortgage-backed securities (“CMBS”)
 
95

 
6

 
(2
)
 
99

Redeemable preferred stock
 
21

 
2

 

 
23

Total fixed income securities
 
$
56,209

 
$
1,210

 
$
(745
)
 
$
56,674

 
 
 
 
 
 
 
 
 
December 31, 2017
 
 

 
 

 
 

 
 

U.S. government and agencies
 
$
3,580

 
$
56

 
$
(20
)
 
$
3,616

Municipal
 
8,053

 
311

 
(36
)
 
8,328

Corporate
 
42,996

 
1,234

 
(204
)
 
44,026

Foreign government
 
1,005

 
27

 
(11
)
 
1,021

ABS
 
1,266

 
13

 
(7
)
 
1,272

RMBS
 
480

 
101

 
(3
)
 
578

CMBS
 
124

 
6

 
(2
)
 
128

Redeemable preferred stock
 
21

 
2

 

 
23

Total fixed income securities
 
$
57,525

 
$
1,750

 
$
(283
)
 
$
58,992

Scheduled maturities for fixed income securities
($ in millions)
 
As of March 31, 2018
 
Amortized cost
 
Fair value
Due in one year or less
 
$
4,629

 
$
4,627

Due after one year through five years
 
28,201

 
28,199

Due after five years through ten years
 
16,363

 
16,220

Due after ten years
 
5,272

 
5,782

 
 
54,465

 
54,828

ABS, RMBS and CMBS
 
1,744

 
1,846

Total
 
$
56,209

 
$
56,674

Actual maturities may differ from those scheduled as a result of calls and make-whole payments by the issuers. ABS, RMBS and CMBS are shown separately because of the potential for prepayment of principal prior to contractual maturity dates.
Net investment income
($ in millions)
 
Three months ended March 31,
 
2018
 
2017
Fixed income securities
 
$
508

 
$
518

Equity securities
 
34

 
44

Mortgage loans
 
51

 
55

Limited partnership interests (1)(2)
 
180

 
120

Short-term investments
 
12

 
6

Other
 
66

 
56

Investment income, before expense
 
851

 
799

Investment expense
 
(65
)
 
(51
)
Net investment income 
 
$
786

 
$
748

(1) 
Due to the adoption of the recognition and measurement accounting standard, limited partnerships previously reported using the cost method are now reported at fair value with changes in fair value recognized in net investment income.
(2) 
Includes net investment income of $103 million for EMA limited partnership interests and $77 million for limited partnership interests carried at fair value for the three months ended March 31, 2018.

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Notes to Condensed Consolidated Financial Statements



Realized capital gains and losses by asset type
 
 
 
 
($ in millions)
 
Three months ended March 31,
 
2018
 
2017
Fixed income securities
 
$
(43
)
 
$
5

Equity securities
 
(93
)
 
106

Limited partnership interests
 
10

 
40

Derivatives
 
(8
)
 
(15
)
Other
 

 
(2
)
Realized capital gains and losses
 
$
(134
)
 
$
134

Realized capital gains and losses by transaction type
 
 
 
 
($ in millions)
 
Three months ended March 31,
 
2018
 
2017
Impairment write-downs (1)
 
$
(1
)
 
$
(43
)
Change in intent write-downs (1)
 

 
(16
)
Net OTTI losses recognized in earnings
 
(1
)
 
(59
)
Sales (1)
 
(42
)
 
208

Valuation of equity investments (1)
 
(83
)
 

Valuation and settlements of derivative instruments
 
(8
)
 
(15
)
Realized capital gains and losses
 
$
(134
)
 
$
134

(1) 
Due to the adoption of the recognition and measurement accounting standard, equity securities are reported at fair value with changes in fair value recognized in valuation of equity investments and are no longer included in impairment write-downs, change in intent write-downs and sales.
Gross gains of $45 million and gross losses of $87 million were realized on sales of fixed income securities during the three months ended March 31, 2018. Gross gains of $235 million and gross losses of $75 million were realized on sales of fixed income and equity securities during the three months ended March 31, 2017.
Valuation changes included in net income for investments still held as of March 31, 2018
 
 
($ in millions)
 
Three months ended
March 31, 2018
Equity securities
 
$
(49
)
Limited partnership interests carried at fair value 
 
78

Total valuation changes
 
$
29

OTTI losses by asset type
($ in millions)
 
Three months ended March 31, 2018
 
Three months ended March 31, 2017
 
Gross
 
Included
 in OCI
 
Net
 
Gross
 
Included
in OCI
 
Net
Fixed income securities:
 
 

 
 

 
 

 
 

 
 

 
 

Corporate
 
$

 
$

 
$

 
$
(9
)
 
$
3

 
$
(6
)
RMBS
 

 

 

 
(1
)
 
(3
)
 
(4
)
CMBS
 

 
(1
)
 
(1
)
 
(6
)
 
3

 
(3
)
Total fixed income securities
 

 
(1
)
 
(1
)
 
(16
)
 
3

 
(13
)
Equity securities (1)
 

 

 

 
(36
)
 

 
(36
)
Limited partnership interests (1)
(2)
 

 

 

 
(7
)
 

 
(7
)
Other
 

 

 

 
(3
)
 

 
(3
)
OTTI losses
 
$

 
$
(1
)
 
$
(1
)
 
$
(62
)
 
$
3

 
$
(59
)
(1) 
Due to the adoption of the recognition and measurement accounting standard, equity securities and limited partnerships previously reported using the cost method are now reported at fair value with changes in fair value recognized in net income and are no longer included in the table above.
The total amount of OTTI losses included in AOCI at the time of impairment for fixed income securities, which were not included in earnings, are presented in the following table. The amounts exclude $202 million and $208 million as of March 31, 2018 and
 
December 31, 2017, respectively, of net unrealized gains related to changes in valuation of the fixed income securities subsequent to the impairment measurement date.

First Quarter 2018 Form 10-Q 13

Notes to Condensed Consolidated Financial Statements


OTTI losses included in AOCI at the time of impairment for fixed income securities
($ in millions)
 
March 31, 2018
 
December 31, 2017
Municipal
 
$
(5
)
 
$
(5
)
ABS
 
(12
)
 
(15
)
RMBS
 
(74
)
 
(77
)
CMBS
 
(4
)
 
(4
)
Total
 
$
(95
)
 
$
(101
)
Rollforward of the cumulative credit losses recognized in earnings for fixed income securities held as of
($ in millions)
 
March 31,
 
2018
 
2017
Beginning balance
 
$
(226
)
 
$
(318
)
Additional credit loss for securities previously other-than-temporarily impaired
 
(1
)
 
(8
)
Additional credit loss for securities not previously other-than-temporarily impaired
 

 
(5
)
Reduction in credit loss for securities disposed or collected
 
15

 
37

Ending balance
 
$
(212
)
 
$
(294
)
The Company uses its best estimate of future cash flows expected to be collected from the fixed income security, discounted at the security’s original or current effective rate, as appropriate, to calculate a recovery value and determine whether a credit loss exists. 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, including past events, current conditions, and reasonable and supportable assumptions and forecasts, are 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, foreign exchange rates, the financial condition and future earnings potential of the issue or issuer, expected defaults, expected recoveries, the value of underlying collateral, vintage, 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, sector 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 estimated recovery value is less than the amortized cost of the security, a credit loss exists and an OTTI for the difference between the estimated recovery value and amortized cost is recorded in earnings. 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.

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Notes to Condensed Consolidated Financial Statements


Unrealized net capital gains and losses included in AOCI
($ in millions)
 
Fair
value
 
Gross unrealized
 
Unrealized net
gains (losses)
March 31, 2018
 
 
Gains
 
Losses
 
Fixed income securities
 
$
56,674

 
$
1,210

 
$
(745
)
 
$
465

Short-term investments
 
3,424

 

 

 

Derivative instruments (1)
 
2

 
2

 
(3
)
 
(1
)
EMA limited partnerships (2)
 
 

 
 

 
 

 
1

Unrealized net capital gains and losses, pre-tax
 
 

 
 

 
 

 
465

Amounts recognized for:
 
 

 
 

 
 

 
 

Insurance reserves (3)
 
 

 
 

 
 

 
(119
)
DAC and DSI (4)
 
 

 
 

 
 

 
(109
)
Amounts recognized
 
 

 
 

 
 

 
(228
)
Deferred income taxes
 
 

 
 

 
 

 
(50
)
Unrealized net capital gains and losses, after-tax
 
 

 
 

 
 

 
$
187

(1) 
Included in the fair value of derivative instruments is $2 million classified as liabilities.
(2) 
Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of EMA limited partnerships’ other comprehensive income. Fair value and gross unrealized gains and losses are not applicable.
(3) 
The insurance reserves adjustment represents the amount by which the reserve balance would increase if the net unrealized gains in the applicable product portfolios were realized and reinvested at current lower interest rates, resulting in a premium deficiency. This adjustment primarily relates to structured settlement annuities with life contingencies (a type of immediate fixed annuities).
(4) 
The DAC and DSI adjustment balance represents the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized.
Unrealized net capital gains and losses included in AOCI
($ in millions)
 
Fair
value
 
Gross unrealized
 
Unrealized net
gains (losses)
December 31, 2017
 
 
Gains
 
Losses
 
Fixed income securities
 
$
58,992

 
$
1,750

 
$
(283
)
 
$
1,467

Equity securities
 
6,621

 
1,172

 
(12
)
 
1,160

Short-term investments
 
1,944

 

 

 

Derivative instruments (1)
 
2

 
2

 
(3
)
 
(1
)
EMA limited partnerships
 
 

 
 

 
 

 
1

Unrealized net capital gains and losses, pre-tax
 
 

 
 

 
 

 
2,627

Amounts recognized for:
 
 

 
 

 
 

 
 

Insurance reserves
 
 

 
 

 
 

 
(315
)
DAC and DSI
 
 

 
 

 
 

 
(196
)
Amounts recognized
 
 

 
 

 
 

 
(511
)
Deferred income taxes
 
 

 
 

 
 

 
(454
)
Unrealized net capital gains and losses, after-tax
 
 

 
 

 
 

 
$
1,662

(1) Included in the fair value of derivative instruments is $2 million classified as liabilities.
Change in unrealized net capital gains and losses
($ in millions)
 
Three months ended March 31, 2018
Fixed income securities
 
$
(1,002
)
Equity securities (1)
 

Total
 
(1,002
)
Amounts recognized for:
 
 

Insurance reserves
 
196

DAC and DSI
 
87

Amounts recognized
 
283

Deferred income taxes
 
154

Decrease in unrealized net capital gains and losses, after-tax
 
$
(565
)
(1) Upon adoption of the recognition and measurement accounting standard on January 1, 2018, $1.16 billion of pre-tax unrealized net capital gains for equity securities were reclassified from AOCI to retained income.  See Note 1 of the condensed consolidated financial statements.

First Quarter 2018 Form 10-Q 15

Notes to Condensed Consolidated Financial Statements


Portfolio monitoring
The Company has a comprehensive portfolio monitoring process to identify and evaluate each fixed income security whose carrying value may be other-than-temporarily impaired.
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, the security’s decline in fair value is considered other than temporary and is 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 by discounting the best estimate of future cash flows at the security’s original or current effective rate, as appropriate, and compares this to the amortized cost of the security. If the Company does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the fixed income security, the credit loss component of the impairment is recorded in earnings, with the remaining amount of the unrealized loss related to other factors recognized in other comprehensive income.
 
For fixed income securities managed by third parties, either the Company has contractually retained its decision-making authority as it pertains to selling securities that are in an unrealized loss position or it recognizes any unrealized loss at the end of the period through a charge to earnings.
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 established thresholds. The process also includes the monitoring of other impairment 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 OTTI using all reasonably available information relevant to the collectability or recovery of the security. Inherent in the Company’s evaluation of OTTI 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 is other than temporary 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 length of time and extent to which the fair value has been less than amortized cost.

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Notes to Condensed Consolidated Financial Statements


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
 
March 31, 2018
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Fixed income securities
 
 

 
 

 
 

 
 

 
 

 
 

 
 

U.S. government and agencies
 
57

 
$
1,514

 
$
(16
)
 
13

 
$
74

 
$
(1
)
 
$
(17
)
Municipal
 
2,535

 
4,626

 
(74
)
 
160

 
323

 
(18
)
 
(92
)
Corporate
 
1,656

 
22,720

 
(458
)
 
199

 
3,006

 
(153
)
 
(611
)
Foreign government
 
43

 
531

 
(9
)
 
4

 
39

 
(1
)
 
(10
)
ABS