Reportable Segments

3 Months Ended

Mar. 31, 2021

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 (previously Discontinued Lines and Coverages) segments and adjusted net income for the Protection Services, Allstate Health and Benefits (previously Allstate 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:

• Realized capital gains and losses, except for periodic settlements and accruals on non-hedge derivative instruments, which are reported with realized capital gains and losses but included in adjusted net income

• Pension and other postretirement remeasurement gains and losses

• Business combination expenses and amortization or impairment of purchased intangibles

• Income or loss from discontinued 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 March 31,
($ in millions)	2021		2020
Underwriting income (loss) by segment
Allstate Protection	$	1,660	$	1,351
Run-off Property-Liability	(3)		(3)
Adjusted net income (loss) by segment, after-tax
Protection Services	49		37
Allstate Health and Benefits	65		24
Corporate and Other	(123)		(107)
Reconciling items
Property-Liability net investment income	673		202
Realized capital gains (losses)	426		(162)
Pension and other postretirement remeasurement gains (losses)	310		(318)
Business combination expenses and amortization of purchased intangibles	(56)		(27)
Income tax expense on reconciling items	(622)		(196)
Total reconciling items	731		(501)
Loss from discontinued operations	(4,163)		(370)
Income tax benefit from discontinued operations	370		82
Total from discontinued operations	$	(3,793)	$	(288)
Less: Net loss attributable to noncontrolling interest	(6)		—
Net (loss) income applicable to common shareholders	$	(1,408)	$	513

Reportable segments revenue information
($ in millions)	Three months ended March 31,
	2021		2020
Property-Liability
Insurance premiums
Auto	$	6,809	$	6,155
Homeowners	2,392		2,037
Other personal lines	505		471
Commercial lines	190		218
Allstate Protection	9,896		8,881
Run-off Property-Liability	—		—
Total Property-Liability insurance premiums	9,896		8,881
Other revenue	385		213
Net investment income	673		202
Realized capital gains (losses)	404		(103)
Total Property-Liability	11,358		9,193
Protection Services
Protection plans	260		206
Roadside assistance	47		51
Finance and insurance products	104		97
Intersegment premiums and service fees (1)	41		38
Other revenue (2)	90		52
Net investment income	10		10
Realized capital gains (losses)	10		(24)
Total Protection Services	562		430
Allstate Health and Benefits
Employer voluntary benefits	263		282
Group health	83		—
Individual accident and health	109		—
Other revenue	80		—
Net investment income	19		20
Realized capital gains (losses)	2		(14)
Total Allstate Health and Benefits	556		288
Corporate and Other
Net investment income	6		14
Realized capital gains (losses)	10		(21)
Total Corporate and Other	16		(7)
Intersegment eliminations (1)	(41)		(38)
Consolidated revenues	$	12,451	$	9,866

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

(2)Other revenue is primarily related to Arity, Allstate Identity Protection, Allstate Dealer Services, and Allstate Protection Plans.